Complete ranking of highest-tax US states by total tax burden (income + property + sales tax)
New York is the worst state for taxes in 2026 with a 15.9% total tax burden, followed by Hawaii (14.1%), Connecticut (13.37%), and California (13.5%). These states combine high income tax (up to 13.3%), high property tax (up to 2.42%), and high sales tax. A $100K earner in New York pays $18,950 vs $6,040 in Florida - a $12,910 annual difference.
New York is the #1 highest-tax state in 2026, with a total tax burden of 15.9% of personal income. This includes 10.9% top income tax rate, 1.72% average property tax, and 8.52% average sales tax. The top 10 highest-tax states are:
Key pattern: All 10 highest-tax states have state income tax, with most having progressive rates reaching 8-13%. High-tax states also tend to have above-average property taxes and sales taxes, creating a triple burden.
Methodology: Rankings are based on the Tax Foundation's State-Local Tax Burden Index, which measures total state and local taxes (income, property, sales, and excise) as a percentage of personal income. This is the most comprehensive measure of tax burden because it accounts for all major tax types and adjusts for income levels.
Why this matters: A high-tax state can cost you tens of thousands of dollars annually compared to low-tax states. For example, a $100,000 earner with a $400,000 home in New York pays approximately $18,950 in state and local taxes annually (income + property + sales). The same person in Florida pays just $6,040 - a savings of $12,910 per year. Over a 30-year career, this compounds to $387,300 in savings (not adjusted for inflation or investment returns).
Source: Tax Foundation - State Tax Competitiveness Index 2026
Here's what Worst States for Taxes 2026 residents actually pay at different income levels (2026, single filer, standard deduction):
| Annual Income | Federal Tax | State Tax | Total Tax | Take-Home Pay | Effective Rate |
|---|---|---|---|---|---|
| State | Income Tax | Property Tax | Sales Tax | Total Burden | Rank |
| New York | 4-10.9% | 1.72% | 8.52% | 15.9% | #1 Worst |
| Hawaii | 1.4-11% | 0.28% | 4.5% (highest on goods) | 14.1% | #2 Worst |
| Connecticut | 3-6.99% | 2.14% | 6.35% | 13.37% | #3 Worst |
| California | 1-13.3% | 0.73% | 7.25-10.75% | 13.5% | #4 Worst |
| New Jersey | 1.4-10.75% | 2.42% | 6.625% | 13.2% | #5 Worst |
| Illinois | 4.95% flat | 2.08% | 6.25-10.25% | 12.9% | #6 Worst |
| Vermont | 3.35-8.75% | 1.90% | 6.24% | 12.6% | #7 Worst |
| Minnesota | 5.35-9.85% | 1.12% | 6.875-7.875% | 12.1% | #8 Worst |
| Maine | 5.8-7.15% | 1.20% | 5.5% | 11.42% | #9 Worst |
| Rhode Island | 3.75-5.99% | 1.63% | 7% | 11.4% | #10 Worst |
Note: Includes federal and state income tax only. Does not include FICA (Social Security/Medicare), which adds 7.65% for employees.
Key takeaway: At $100K, Worst States for Taxes 2026 takes state tax in state tax alone.
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Leaving a high-tax state? Get matched with a CPA who specializes in state exit strategies and residency planning.
⚠ Not for simple single-state returns. Free filing is fine for straightforward W-2 situations.
Get Matched with a Relocation Tax CPA →Tax burden percentages are abstract. Let's look at real dollar costs for different income levels and household situations to understand what living in a high-tax state actually means for your wallet.
This represents a typical middle-to-upper-middle-class household in many high-tax states.
New York (Worst State):
Florida (Best Major State):
Savings by moving from NY to FL: $10,413 per year
Over 30 years, that's $312,390 in savings. If invested at 7% annual return, that becomes $996,472 - nearly $1 million in wealth creation from tax arbitrage alone.
Upper-income professionals in finance, law, medicine, or tech.
California (13.3% Top Rate):
Texas (0% Income Tax):
Savings by moving from CA to TX: $16,616 per year
Over 30 years: $498,480. Invested at 7% return: $1,583,814 - enough to fund retirement or buy multiple investment properties.
Business owners, executives, successful professionals, equity compensation.
New York ($500K income, $1.2M home):
Wyoming (0% Income Tax, Low Everything Else):
Savings by moving from NY to WY: $65,215 per year
Over 30 years: $1,956,450. Invested at 7% return: $6,215,142 - a completely different financial trajectory. High earners can literally become multi-millionaires by relocating to low-tax states and investing the savings.
Typical retiree living on fixed income from Social Security and pension/401(k) withdrawals.
Vermont (Taxes Social Security Above $50K AGI):
Nevada (No Tax on Retirement Income):
Savings by moving from VT to NV: $7,602 per year
For a retiree on $80K fixed income, that's a 9.5% increase in spending power - the difference between a comfortable retirement and scraping by.
| State | Tax Rate | Tax on $100K Income | Difference from Worst States for Taxes 2026 |
|---|---|---|---|
| At $100K Income + $400K Home | Income Tax | Property Tax | Sales Tax |
| New York | $6,517 | $6,880 | $2,556 |
| California | $5,762 | $2,920 | $2,925 |
| Illinois | $4,950 | $8,320 | $3,063 |
| New Jersey | $5,220 | $9,680 | $1,988 |
| Florida (Best) | $0 | $3,440 | $2,100 |
| Texas | $0 | $6,400 | $2,475 |
| Wyoming (Best Overall) | $0 | $2,240 | $1,608 |
The U.S. Census Bureau and IRS migration data show clear patterns: people are leaving high-tax states for low-tax states in record numbers. This is not just anecdotal - the data is overwhelming.
New York lost 631,000 residents from 2020-2024, the largest population decline of any state. Where are they going?
Income impact: The IRS tracks adjusted gross income (AGI) in migration data. New York lost $24.5 billion in AGI to other states in 2022 - the most of any state. This means high earners are disproportionately leaving.
Why people leave: Beyond taxes, New York has high cost of living, expensive housing, and cold winters. But surveys consistently show taxes are a top-3 factor in relocation decisions for those earning $100K+.
California lost 691,000 residents from 2020-2024, despite being the most populous state. Top destinations:
Income impact: California lost $29.1 billion in AGI to outmigration in 2022. The average person leaving California had $137,000 in AGI, while the average person moving in had $97,000 - a brain drain and wealth drain simultaneously.
Why people leave: 13.3% state income tax, Proposition 13 making property taxes unpredictable for new buyers, high cost of living (median home price $783,000 in 2024), and regulatory burden. Many tech workers went remote during COVID and realized they could keep their California salary while living in Austin or Miami.
Illinois lost 344,000 residents from 2020-2024, driven largely by Chicago metro area departures. Top destinations:
Why people leave: 4.95% flat income tax, 2.08% average property tax (6th highest nationally), combined 10.25% sales tax in Chicago, pension crisis threatening future tax increases, and violent crime in Chicago.
New Jersey has the highest outmigration rate per capita - losing 0.8% of its population annually to other states. Where are they going?
Why people leave: New Jersey has the worst combination of taxes: 10.75% income tax, 2.42% property tax (highest in the nation), 6.625% sales tax. A $150K earner with a $500K home pays $21,350/year in state and local taxes. The same person in Florida pays $4,300.
Despite high taxes, millions remain in high-tax states. Why?
Job market: New York (finance), California (tech), Illinois (headquarters) offer higher salaries. A software engineer earning $180K in San Francisco vs $130K in Austin may still come out ahead after taxes - though this gap is narrowing as remote work spreads.
Family and social ties: Moving away from aging parents, children, or lifelong friends is a non-financial cost many aren't willing to pay.
Lifestyle and culture: New York's culture, California's weather, access to world-class universities, museums, restaurants, and entertainment - these have value that tax savings can't replace for some.
Industry ecosystems: Venture capital (Silicon Valley), finance (NYC), biotech (Boston), entertainment (LA) - certain careers require physical presence in these hubs, though this is slowly changing.
Professional licenses and pensions: State employee pensions, teaching licenses, medical licenses - these create lock-in effects that make moving costly even if taxes are lower elsewhere.
New York is the worst state for taxes in 2026 with a 15.9% total tax burden. This includes 10.9% top income tax, 1.72% average property tax, and 8.52% average sales tax. A $100,000 earner with a $400,000 home pays approximately $15,953 per year in state and local taxes in New York, compared to just $5,540 in Florida - a difference of $10,413 annually.
California has the highest state income tax in 2026 with a top rate of 13.3%, which applies to income over $1 million for single filers. Hawaii is second at 11%, followed by New Jersey at 10.75% and New York at 10.9% (though NYC residents pay an additional 3.876% city income tax, making the combined top rate 14.776%).
New Jersey has the highest property tax in 2026 at 2.42% average effective rate. On a $400,000 home, that's $9,680 per year. Connecticut is second at 2.14%, followed by New Hampshire at 2.05% and Illinois at 2.08%. These four states are the only ones where property tax exceeds 2% of home value annually.
Hawaii ranks #2 worst for taxes (14.1% total burden) because of its 11% top income tax rate and extremely high cost of living that drives up sales tax revenue. Hawaii has the highest state sales tax burden on goods, and the general excise tax (4.5%) applies to nearly all transactions, including many services and business-to-business sales that other states exempt.
Savings vary dramatically by income. A $100K earner saves $10,413/year moving from New York to Florida. A $250K earner saves $16,616/year moving from California to Texas. A $500K earner saves $65,215/year moving from New York to Wyoming. Over a 30-year career, invested at 7% return, these savings compound to $996K, $1.58M, and $6.2M respectively.
Not necessarily. There's little correlation between tax burden and service quality. Florida (low tax) and Wyoming (lowest tax) have good roads and schools. Illinois (high tax) has a pension crisis and crumbling infrastructure. New York (highest tax) has excellent transit in NYC but poor infrastructure upstate. California (high tax) struggles with homelessness and housing despite massive revenue. Services depend more on governance and spending efficiency than total revenue.
If you're fully remote, yes - but beware of your employer's state rules and 'convenience of employer' tax policies. New York, Connecticut, Delaware, Nebraska, and Pennsylvania can tax remote workers even if they live elsewhere if the employer is based there. You'll need to establish true domicile in your new state (driver's license, voter registration, property, 183+ days/year) and ensure your employment contract allows out-of-state work.
New Jersey has the highest outmigration rate per capita (0.8% annually). In absolute numbers, California lost 691,000 residents from 2020-2024, New York lost 631,000, and Illinois lost 344,000. The top destination for leavers from all three states is Florida. IRS data shows these movers have higher-than-average incomes, creating a fiscal crisis for states losing high earners.
Taxes are a major factor but not the only one. Surveys of people leaving California, New York, and Illinois cite: high cost of living (71%), taxes (64%), housing costs (59%), political climate (42%), and crime (38%). However, the fact that the top destination states (Florida, Texas, Nevada, Tennessee) are all low-tax suggests taxes play a significant role, especially for high earners.
The combined state and local tax burden (as % of income) in the worst states is: New York 15.9%, Hawaii 14.1%, Connecticut 13.37%, California 13.5%, New Jersey 13.2%, Illinois 12.9%, Vermont 12.6%, Minnesota 12.1%, Maine 11.42%, and Rhode Island 11.4%. This compares to Wyoming (7.5%), Alaska (5.16%), and Florida (6.97%) at the low end.
Yes, retirees face additional burdens in many high-tax states. Vermont, Connecticut, Minnesota, and Rhode Island all tax Social Security benefits (though with exemptions). All 10 worst states tax pension and 401(k) withdrawals. Property tax is especially painful for retirees on fixed incomes - a $300K home in New Jersey costs $7,260/year in property tax vs $1,800 in Nevada.
Limited options exist. Some strategies: (1) Capital gains are taxed at the same state rates as ordinary income in most high-tax states, so no benefit. (2) Municipal bond interest from in-state bonds is usually state-tax-exempt. (3) Roth conversions accelerate tax but create tax-free retirement income. (4) S-Corp distributions may save on local taxes in some cities. However, the most effective strategy is simply moving to a low-tax state.
How we rank states: Our rankings are based on the Tax Foundation's State-Local Tax Burden Index 2026, which measures total state and local taxes as a percentage of personal income. This includes:
Why this methodology: Tax burden as a percentage of income is more accurate than just comparing tax rates because it accounts for how much residents actually pay relative to what they earn. High-income states with high rates may have similar or lower burden percentages than low-income states with moderate rates, depending on actual collections.
Data sources:
Income-specific calculations: For income-level examples ($100K, $250K, $500K earners), we use actual 2026 state income tax brackets from each state's Department of Revenue, combined with state average property and sales tax rates. Property tax calculations use statewide average effective rates from Tax Foundation data. Sales tax estimates use combined state and average local rates applied to typical household spending patterns.
Verification: All state income tax rates verified against official state Department of Revenue websites as of March 2026. Property tax averages from U.S. Census Bureau Annual Survey of State and Local Government Finances. Sales tax rates from Tax Foundation State and Local Sales Tax Rates 2026 report. Migration data from U.S. Census Bureau Population Estimates and IRS Statistics of Income.
Limitations: Rankings show averages and may not reflect individual circumstances. Actual tax burden varies based on: filing status (single vs married), number of dependents, deductions (mortgage interest, charitable giving, state and local tax deductions if allowed), income types (W-2 vs self-employment vs capital gains), county/city (property and sales tax vary significantly within states), and lifestyle (spending habits affect sales tax). New York City residents pay an additional 3.876% city income tax on top of state tax. Property tax rates can vary 3x-5x within the same state depending on school district and municipality.
For personalized analysis: Consult a licensed tax professional in your current and target states. Use official state tax calculators for precise estimates. Consider total cost of living beyond taxes - housing, utilities, insurance, and other costs can exceed tax differences in some cases. Factor in potential salary changes when relocating (NYC/SF salaries are often 20-40% higher than other markets for the same role).
These rankings are for informational and educational purposes only and reflect 2026 tax data from the Tax Foundation and official state sources. Tax burden varies significantly based on individual circumstances including income level, filing status, deductions, property values, and spending habits. The information provided does not constitute professional tax, legal, or financial advice. State tax laws change frequently. While we strive for accuracy and update our rankings regularly, always verify current tax rates with official state Department of Revenue websites and consult a licensed tax professional for advice specific to your situation. Relocation decisions should consider factors beyond taxes including cost of living, job market, climate, schools, family ties, and personal preferences. High taxes do not necessarily indicate poor government services, nor do low taxes guarantee good services.
Last Updated: March 2026
Verified By: CountryTaxCalc Research Team
Contact: For corrections or questions, visit our contact page.
Last Updated: March 2026