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These states rank among the places with the highest tax rates, data suggests

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Published  March 3, 2026 2:34pm CST
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FILE-A man looks unhappy while filing his 1040 tax form and looking at his tax instruction book. (Getty Images)

The Brief 

    • Illinois ranks as the top state with the highest tax rate this year, according to a new WalletHub report.
    • WalletHub ranked Alaska as the number one state with the lowest tax rate.
    • Rankings for the states utilized four categories related to taxes, including real estate tax and income tax.

Tax season is fast approaching and millions of Americans are gathering their documents to file in time for the April 15 deadline. 

And while we all have the same responsibility to manage our taxes, some people pay substantially more depending on where they reside. 

To identify states with the highest and lowest tax rates, WalletHub compared the 50 states and Washington, D.C. across four types of taxation: real estate tax, vehicle property tax, income tax, and sales and excise tax. 

RELATED: Study reveals which states have the highest and lowest income tax burdens - See where your state ranks

The personal finance website also calculated income-tax obligations by applying the effective income-tax rates in each state and locality to the average American’s income.

States with the highest tax rates

Local perspective:

To create their rankings of states with the highest and lowest taxes,  WalletHub used data collected as of Feb. 3, 2026 from multiple sources, including the U.S. Census Bureau, Bureau of Labor Statistics, and the Tax Foundation.

These states rank as the areas with the highest tax rates. 

  1. Illinois
  2. New York
  3. Connecticut
  4. Pennsylvania
  5. New Jersey
  6. Kansas
  7. Nebraska
  8. Iowa
  9. Ohio
  10. Texas
  11. Louisiana
  12. Hawaii
  13. Mississippi
  14. Michigan
  15. Wisconsin
  16. Washington
  17. Kentucky
  18. Arkansas
  19. Maryland
  20. Indiana

The complete list of states with the highest tax rates can be viewed here.

RELATED: Where are property taxes highest and lowest? Analysis of cities and states

States with the lowest tax rates 

Dig deeper:

Based on WalletHub’s findings, these states ranked as the places with the lowest tax rates: 

  1. Alaska
  2. Delaware
  3. Wyoming
  4. Idaho
  5. Montana

To see the full list of states with the lowest tax rates, click here. 

The Source: Information for this story was provided by WalletHub, which created a ranking of the states with the highest and lowest taxes using data from sources including the U.S. Census Bureau and Bureau of Labor Statistics. This story was reported from Washington, D.C.


 

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