by Liz Malm, Gerald Prante
April 07, 2014
During the 2011 fiscal year, state-local tax burdens as a share of state incomes decreased on average. This trend was largely driven by the growth of income in all states. In 2011, the residents of New York, New Jersey, and Connecticut had the highest state-local tax burdens as a share of income. In these states, residents have forgone over 11.9 percent of income due to state and local taxes. Residents of Wyoming paid the lowest percentage of income in 2011 at just 6.9 percent. They replaced Alaska, which had previously been the least-taxed for multiple decades. After Wyoming and Alaska, the next lowest-taxed states were South Dakota, Texas, and Louisiana. The twenty mid-ranked states differ in burden by just over one percentage point. Taxes paid within states of residence decreased on average in 2011 while taxes paid to other states increased.