IBR STAFF//April 30, 2026//
IBR STAFF//April 30, 2026//
They were the last two states to join the union in 1959, but Hawaii and Alaska are miles apart when it comes to taxes paid by their respective residents.
The Aloha State was ranked the most burdensome to taxpayers with a collective tax haul of 13.3%, while Alaskans pay the lowest rate at 4.92%, according to a new study released by WalletHub. Findings were calculated using each state’s property, income and sales and excise tax rates.
At 7.04%, Idaho landed at No. 42 overall, with a 1.92% property tax rate, 1.84% for individual income tax, and a 3.29% sales and excise tax burden.
Surprisingly California, typically considered one of the nation’s highest states for taxes, only checked in at No. 11 on the list with a 9.24% total tax burden. However, the Golden State continues to impose the single-highest marginal income tax rate of 13.3% on its highest earners.
New York (12.39%) and Vermont (11.1%) closely followed Hawaii to round out the three most heavily taxed states nationwide. New Mexico (10.75%) and Maine (10.01%) were the only others to reach double-digits.
“It’s easy to be dismayed at tax time when you see just how much of your income you lose,” said Chip Lupo, WalletHub analyst. “Living in a state with a low tax burden can alleviate some of that stress.”
With a 4.76% income tax rate, Oregon maintained its place at the top, while seven states ― Alaska, Tennessee, Florida, South Dakota, Wyoming, Texas and Nevada ― charge zero state income tax to residents.
Sales tax in Hawaii also remains the highest at 7.48%, with the lowest rate (.91%) in New Hampshire.
In the property tax category, Vermont (4.89%) registered the highest figure, while Alabama checked in with the lowest at 1.40%.
Joining Alaska to round out the five states with the least collective tax burden are: New Hampshire at No. 49 (5.38%); Tennessee at No. 48 (6.21%); Florida 47th (6.27%); and No. 46 Delaware, at 6.28%.