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U.S. State Tax Burden · Where Americans Pay the Most

Published 2026-07-072 min read
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U.S. States · Total State Tax Burden as % of Personal Income

U.S. State Tax Burden · Where Americans Pay the Most

Total tax burden = property + income + sales & excise taxes as a share of personal income (federal taxes excluded). Hawaii tops at 13.3%, followed by New York (12.4%) and Vermont (11.1%). At the low end sit no-income-tax states — Alaska 4.9%, plus Wyoming, Tennessee and New Hampshire 5-7%. The gap between highest and lowest is more than 8 points of personal income — enough to shape where households and businesses relocate.

U.S. State Tax Burden by state — total property + income + sales & excise taxes as share of personal income. HI 13.3%, NY 12.4%, VT 11.1%, NM 10.8% highest; AK 4.9%, WY 6.7%, TN 6.2% lowest.
State tax burden as a share of personal income by state. Federal taxes excluded. Diagonal-shaded states have no individual income tax. High-burden states cluster in the Northeast and Pacific; low-burden states are the no-income-tax cluster.

Why this matters for B2B

Tax burden shifts where businesses locate warehouses, distribution centers and hiring. Texas (7.7%), Florida (6.3%), Tennessee (6.2%), Wyoming (6.7%) and no-income-tax states keep pulling both households and business investment. That is the same corridor where wholesale demand is scaling. Cube-Age's Houston hub sits directly in the low-burden corridor. Pair with state migration flows (c79) and income after bills (c26).

Source: U.S. Bureau of Economic Analysis (BEA), state GDP by industry, 2025 series. Visualization: Voronoi / Visual Capitalist ("Manufacturing's Share of U.S. GDP by State"). Original image reproduced above with source attribution intact.