1. Vermont
Vermont’s quaint charm hides a not-so-charming tax load. Residents pay around 11.5 % of income in taxes—a top-three burden nationwide. Property taxes, in particular, are brutal, taking up a big slice of household budgets. That cozy New England vibe comes with a cost.
On top of that, income and other taxes pile on to keep Vermont up there on most-wanted lists—for tax sympathies, at least. It’s a scenic state, yes—but when your returns keep shrinking, you might start longing for something flatter, tax-wise.
2. New York
Living in New York kind of feels like paying rent to yourself—except you don’t get the place. The overall tax burden on residents hovers around 12 % of income, making it one of the highest in the nation. The income tax burden alone is a hefty chunk, and that’s before factoring in property and sales taxes. The toll on your wallet daily is undeniably real.
But wait, there’s more: New York City layers on an extra local sales tax, tipping the total even higher. Between the state and local take, it’s enough to make you wonder if you’re living to pay taxes. And if you’re a homeowner, property taxes aren’t doing you any favors either. It’s like your pay packet keeps shrinking while your expectations keep growing.
3. Hawaii
Hawaii takes “paradise” and sneaks a “tax heist” in there too. Residents pay nearly 13.9 % of their income in total state and local taxes—the highest overall tax burden in the U.S. You get income, sales, and property taxes all bundled in a tropical tax surprise. It’s enough to make you question whether luaus are worth the levies.
Plus, the combined sales and excise burden is sky-high, adding another painful pinch at checkout. Even the sunshine comes at a cost when you see how much of your paycheck vanishes. And let’s not forget property taxes—while not the worst, they’re still part of the package. In short, even paradise can sting.
4. California
California isn’t just Hollywood dreams; it’s tax nightmares too. Top earners face the highest marginal income tax in the nation—13.3 %, plus a 1 % mental health surcharge if you make over $1 million. That’s some expensive star treatment. Your golden state fantasy comes with a golden tax rate.
Sales tax isn’t giving you any breaks either—statewide base is 7.25 %, and with local additions, the average hovers near 8.85 %. And property taxes—while restrained by Prop 13—still cost an average of about $10,000 per household. Luxury living? More like luxury taxing.
5. Maine
If lobster rolls don’t fill you up, Maine’s tax burden might. With over 10.6 % of your income swept away in state and local taxes, it’s another heavyweight state in the tax ring. Property taxes are steep, and income taxes aren’t exactly a bargain either. That fresh ocean breeze comes with stale receipts.
Still, you might argue the lifestyle’s worth it—but your paycheck might beg to differ. The bills are real, and they’re relentless. Tax season? More like tax season every season.
6. Connecticut
Connecticut bites into your income like a bitter espresso shot. Roughly 10 % of your income goes to taxes before you’ve had your coffee. Property taxes are notably high, and income taxes don’t hold back either. Cozy New England appeal—you pay for it.
Add in the fact that the state pulls in a significant tax haul from excise and sales, and it’s a financial trifecta. It’s like paying for three cups of coffee when you thought you ordered one. If you’re dreaming of Hartford, your bank account might be waking up instead.
7. Minnesota
Ah, Minnesota—land of lakes, and apparently, lakes of taxes. With nearly 10 % of income going to taxes, it stands among the heavier burdens in the nation. Income taxes are a big piece, and property taxes drive another wedge. That Midwestern nice doesn’t cover what’s nice and light on taxes.
On top of that, Minnesota uniquely taxes long-term capital gains at the same rate as ordinary income—unlike almost any other state. If you’re counting on investments to cushion the blow, Minnesota’s here to remind you they won’t do you any favors. The North Star State? More like North Tax State.
8. Illinois
In Illinois, your property is taxed like it’s sitting on a gold mine. With an overall tax burden around 9.7 % of income, it’s not the worst, but it’s still hefty. Property taxes are a particular thorn in the side, ranking among the highest. And then there’s income and sales taxes tagging along.
Chicagoland taxes are no joke—especially when the weather outside isn’t this cold. Every bill seems a little sharper. It’s like paying rent to the state just for breathing.
9. New Jersey
You know those hefty property tax bills in New Jersey? They’re not a dream. With effective property tax rates over 2 %, it’s one of the priciest states for homeowners. The overall tax burden clocks in at roughly 9.5 % of income, and income tax adds to that pressure. It’s root-for-the-Devils-town, but not for your budget.
And sales and estate taxes sneak in too. It’s like New Jersey’s hiding a surcharge in every corner. You pay for your acreage—or even your tiny yard.
10. Rhode Island
Rhode Island might be small, but its tax bite is mighty. Residents pay around 9.4 % of income in total taxes—a respectable spot in this painful ranking. They’ve got combined sales and sin taxes that sneak up quick. Add income and property taxes, and every day feels like tax day.
For a state you can cross end to end, the financial sticker shock might span the whole distance. Those coastal views? Yeah, you pay extra just living near them.
11. Maryland
Maryland slips onto the list with a 10 % overall burden, thanks in large part to income taxes that climb up to 5.75 % statewide—and local “piggyback” taxes that counties tack on. That means your paycheck can shrink faster than you expected. Add property taxes into the mix, and the charm of Chesapeake living gets expensive. It’s a tough balance for middle-income earners.
Even with Washington, D.C. next door, Maryland residents often feel like they’re paying city-level taxes without the big-city perks. The crab cakes might be delicious, but they come with a pricey side of tax sauce.
12. Oregon
Oregon might lure you in with “no sales tax,” but don’t be fooled. It balances that out with one of the highest state income tax rates, topping out at 9.9 %. That’s a deep bite out of your paycheck, especially for professionals in Portland and beyond. It’s a clever trick that still hurts your bottom line.
And while property taxes aren’t top of the charts, they still take a meaningful slice. Without sales tax as a buffer, you might think you’re saving, but the income-heavy structure tells a different story. Oregon’s beauty is undeniable—but so is its tax bite.
13. Washington
Welcome to the “no income tax” twilight zone—then hit with sales tax reality. Washington state doesn’t tax your paycheck, but the combined sales rate (up to 10 %) and excise taxes sure make up for it. You’ll feel that pinch every time you buy anything—not even Netflix is safe. And it’s not just groceries—prepared foods and supplements get taxed too.
Property taxes and excise taxes keep the pressure alive. So even without the income tax dagger, you’re not escaping Scot-free—it’s just a differently shaped blade.
14. Mississippi
Finally, the Magnolia State: you pay a flat 5 % income tax and a hardcore grocery-inclusive sales tax—making groceries some of the most taxed in the nation. If you thought buying basics would be cheap, think again. All your meals come with surprise tax toppings. It’s the kind of unexpected surcharge you really only notice when buying bread.
Add property taxes and a flat structure that squeezes the working class harder, and suddenly, your weekly shop feels like a budget debate. It’s like they taxed your pantry under the radar.
This post 14 States Where Taxes Make You Question Why You Live There was first published on American Charm.
