The 25 states where high-income Americans earning $150,000 a year pay the least in taxes

Maddie Meyer/Getty ImagesNo income-tax states Alaska, Nevada, and Wyoming top the list.
  • Taxes can eat up a significant portion of your paycheck, but how much depends where you live.
  • WalletHub recently analysed US tax data and discovered the best states for people considered “high income.”
  • Considering state and local income taxes, property taxes, and sales taxes, WalletHub calculated the tax burden for a resident earning $US150,000 – that is, the percentage of their income spent on taxes.
  • New York fared the worst for high-income residents, while no income-tax states Alaska, Nevada, and Wyoming top the list of best states.

“The more you make, the more they take.”

That’s a common criticism of our progressive tax system in the United States, but the Institute on Taxation & Economic Policy’s 2018 report found that the overall tax burden on a national level is actually higher for low-income families than it is for middle-income households and the top 1% of earners, meaning they pay more in taxes in relation to their income.

WalletHub used data from the Institute on Taxation & Economic Policy report to find out which states take the least amount of taxes from their high-income residents, calculated as a per cent of income.

WalletHub found the overall tax burden – comprised of sales and excise taxes, property taxes, and income taxes – for a $US150,000 annual income in every state. States where taxes make up the smallest share of income ranked highest.

New York fared the worst for high-income residents, while no income-tax states Alaska, Nevada, and Wyoming top the list of best states.

Below, check out the 25 best states to live for high earners and the total tax burden as a per cent of income.

25. Georgia – 8.21%

24. Missouri – 8.15%

23. North Carolina – 8.07%

22. Indiana – 8.01%

21. Arizona – 8.00%

20. South Carolina – 7.94%

19. Utah – 7.93%

18. Michigan – 7.89%

17. Mississippi – 7.77%

16. Idaho – 7.64%

15. Louisiana – 7.60%

14. Colorado – 7.58%

13. Washington – 7.32%

12. Montana – 7.28%

11. Texas – 7.05%

10. Delaware – 6.88%

9. Alabama – 6.31%

8. North Dakota – 6.01%

7. New Hampshire – 5.87%

6. South Dakota – 5.76%

5. Florida – 5.45%

4. Tennessee – 5.11%

3. Wyoming – 5.03%

2. Nevada – 4.31%

1. Alaska – 3.01%

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