The U.S. States With the Lowest (and Highest) Tax Rates

Based on this ranking system, Alaska’s total state and local tax rates on the median U.S. household are 6.73 percent, and that hypothetical household pays just under $5100 on those taxes per year. As WalletHub points out, sales and excise taxes take a good 8 percent chunk out of the median Washington resident’s annual income; and Texans shell out 1.63 percent of their annual income on real estate taxes. In the chart below you can see all the states ranked by state and local tax rates, plus what the median U.S. household pays annually in each state.