Report: Burden on Tennessee taxpayers second-lowest in U.S.
(The Center Square) – The low tax burden on Tennessee residents is bested by only one state, according to a new report by the personal finance website WalletHub.
A taxpayers’ tax burden reflects the proportion of total personal income residents pay toward state and local taxes. WalletHub’s study determined Tennessee’s total tax burden for individuals was 5.74%, the second-lowest in the U.S.
WalletHub compared the 50 states across three tax burdens and added the results to obtain the overall tax burden for each state. Those tax burdens were property tax as a share of personal income, individual income tax as a share of personal income and total sales and excise tax as a share of personal income.
Tennessee ranked third lowest in the U.S. in property tax burden (1.70%) and eighth lowest in individual income tax burden, but it ranked 14th highest in total sales and excise tax burden (3.96%).
Alaska and its 5.10% overall tax burden was the only state lower than Tennessee in total tax burden. Wyoming (6.14%), Delaware (6.21%) and New Hampshire (6.84%) rounded out the five lowest tax burdens in the U.S.
Alaska, Florida, Nevada, South Dakota, Texas, Washington and Wyoming had no individual income tax burden, according to WalletHub.
Alabama (1.41%) had the lowest property tax burden in the U.S., and Oregon (1.06%) had the lowest sales and excise tax burden.
New York (12.79%), Hawaii (12.19%), Vermont (10.75%), Maine (10.5%) and Connecticut (10.44%) had the highest overall tax burdens.
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