2023 Tax Burden by State & Tax Facts – WalletHub Study

With Tax Day approaching on April 18 and 73% of Americans thinking that the government does not spend their tax dollars wisely, the personal-finance website WalletHub today released its 2023 Tax Burden by State report, as well as expert commentary, along with its 2023 Tax Facts infographic.

In order to determine which states tax their residents most aggressively, WalletHub compared the 50 states based on the three components of state tax burden – property taxes, individual income taxes, and sales and excise taxes – as a share of total personal income.

States with Highest Tax Burdens (%) States with Lowest Tax Burdens (%)
1. New York (12.47%) 41. Oklahoma (7.12%)
2. Hawaii (12.31%) 42. Missouri (7.11%)
3. Maine (11.14%) 43. Montana (6.93%)
4. Vermont (10.28%) 44. South Dakota (6.69%)
5. Connecticut (9.83%) 45. Wyoming (6.42%)
6. New Jersey (9.76%) 46. Florida (6.33%)
7. Maryland (9.44%) 47. Tennessee (6.22%)
8. Minnesota (9.41%) 48. New Hampshire (6.14%)
9. Illinois (9.38%) 49. Delaware (6.12%)
10. Iowa (9.15%) 50. Alaska (5.06%)

Key Stats – Tax Facts Infographic

  • Americans spend 6.5 billion hours doing taxes each year. The average person spends 13 hours and $250 completing their 1040.
  • 92% of tax returns are expected to be filed electronically. The average refund in 2023 is $3,079, as of 2/24/2023.
  • Taxpayers had difficulty reaching the IRS by telephone during the 2022 filing season, with only 10% of calls receiving live assistance and hold times averaging about 29 minutes.

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