Study Reveals Best And Worst States For Middle-Class Earners During Tax Season (2024)

Study Reveals Best And Worst States For Middle-Class Earners During Tax Season (1)

Money

April 8, 2024

As for middle-class earners, states with the least tax burdens varied by region and political affiliations.

With Tax Day coming April 15, a study has revealed which states take the most and the least during tax season.

WalletHub released the study in February, including state income taxes as well as sales and excise and property taxes for its analysis. For middle-class workers, the best states to live in take 4.98% to nearly 8.5% from their incomes. The publication determined the medium income level to be at $50,000.

Alaska ranked first with South Carolina closing the 10 best states for middle-income earners. The states ranged across the political scale and regions. New Hampshire and Delaware, in the Northeast to Mid-Atlantic, respectively, are both blue states in the top three.

As for the worst states to make a middle-class income, Hawaii collects 13.62% in taxes. New York and Illinois followed, with both over 12.5% in collections. Louisiana was the only Southern state in the bottom five, taking 12.05% in state taxes.

Surprisingly, many places with no state income tax did not rank within the top 10 of lowest burdens. Texas, Tennessee, and Florida varied in regards to their breaks for residents. While Washington state collects no state income tax as well, it ranked among the highest at 11.96% for middle-incomes. Florida and Nevada still held their place in the top 15 with the least taken.

The financial platform also noted that despite these varying ranges for middle-class Americans, the one-percenters remained the least impacted by Uncle Sam, according to Business Insider. The country’s wealthy individuals only pay 7.2% on average.

Furthermore, the best states for higher earners are almost identical in its top five with middle incomes. Alaska, New Hampshire, and Wyoming stayed in both levels, with Florida and North Dakota being new additions for wealthier individuals. Alaska kept the top spot at all three income ranges, proving itself as the best overall for lesser tax burdens.