Tax season is upon us and people around the country are trying to figure out how much they owe and why.
Americans pay an average of $14,000 a year in federal taxes, but in some states, the local tax burden is significantly higher than in others.
WalletHub set out to find the states with the highest and lowest tax rates. It looked at the differing rates for four types of taxation: real estate tax, vehicle property tax, income tax, and sales and excise tax.
“Every year during tax season, Americans are reminded of just how much of their hard-earned income isn’t theirs to keep,” WalletHub analyst Chip Lupo said. “Living in the right state can ease the stress of tax time, though, as taxpayers in the least expensive states pay less than half as much as those in the most expensive states.”
Continue reading to see which five states pay the most in taxes — and which five pay the least.
