States With The Lowest Taxes, 2007 Edition

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Once again the Tax Foundation did their annual survey of state taxes (income, real estate, etc.) and determined that, once again, Alaskans pay the least amount in taxes as a percentage of income – a mere 6.6% for the seventeenth year in a row. None of the other top five even break 8% (second lowest is New Hampshire, with 8% on the nose) which is tiny compared to the top five which are all over 12.4%.

Low Five

  • Alaska – 6.6%
  • New Hampshire – 8.0%
  • Tennessee – 8.5%
  • Delaware – 8.8%
  • Alabama – 8.8%
High Five

  • Vermont – 14.1%
  • Maine – 14.0%
  • New York – 13.8%
  • Rhode Island – 12.7%
  • Ohio – 12.4%

So, how did they reach that number? They calculated what that state’s residents pay in state and local income taxes, property taxes, sales taxes, luxury taxes, fuel taxes and any other tax in the state. Did you know Alaskans don’t pay income or state taxes? Yeah, I bet that helps lower the tax burden. They also get refunds from the government because of the oil revenue too. Yep, that helps the burden too.

Here’s the full list of states, my fair state of Maryland came in 23rd with a burden of 10.8%.

{ 16 comments, please add your thoughts now! }

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16 Responses to “States With The Lowest Taxes, 2007 Edition”

  1. samerwriter says:

    Not only do Alaskans pay no income or sales tax, but Alaska, by a long shot, gets the most federal money per capita.

    Granted Alaska has some extremely unique characteristics that may justify some additional dollars, but by and large this is a reflection of the seniority of Alaska’s congressional delegation, which until very recently was among the most senior of any state.

  2. Not surprisingly, Maine is at the top of the list. I should move 50 miles west or so, and take advantage of the New Hampshire taxes…too bad I love living in Maine so much.

  3. theWizard says:

    And the main reason Alaska has such a low tax burden……. OIL!, Black Gold, Texas Tea.

    My understanding is that every citizen of Alaska gets several hundred dollars of oil money each year.

    Fortunately I live in the great State of Tennessee so third is not so bad. At least its not as cold as 1st and 2nd place, and better music.

    We don’t have a state income tax, but our sales tax is quite high. On food the tax is 8.25% and on general merchandise it can go as high as 9.75%.

    So the 8.5% must be some kind of overall average.

  4. terrence, from Western Canada says:

    Oh, well, up here in the great white North (Canada), in 2006, the average tax burden (income tax, sales tax, hidden taxes) was 45% of income. The 2006 national average for family income was $63,001; taxes $28,311; food, shelter, clothing, $22412 (36% of income). Yes, we now pay more for taxes than for food, shelter, and clothing.

    PS. The compulsory “health” care system up here is not particularly good – if you are not a politician, a sports figure, or injured on a job – it is a national “wait” system. You can get an MRI for a dog in a few days; its owner can wait for months (easily four to six). Furthermore, if you do not have “extended” health care (either from employment or by paying a few hundred dollars a month), many things are NOT covered (ambulance costs are often not covered if you do not have “extended”).

  5. thomas says:

    Alaska also receives the most federal spending per capita because our state is where yours was a hundred years ago. Many communities have no roads, no sewage systems etc….there’s alot of “catching up”to do

  6. Jay says:

    Did they happen to check and see that IDAHO actually is the second lowest???? Or has that changed in the middle of the night?

  7. Bob says:

    If anyone is thinking of moving to Florida, be aware that you will pay much, much higher property taxes than folks who have been living there for a while. Their constitution mandates that folks who have lived in their homes for years will pay unfairly low property tax To make up for this anyone who purchases a home now pays very high property tax. For example, the guy down the street who lives in an expensive home on the waterfront may pay less tax than you even if you buy a smaller, simpler home away from the waterfront. And, the system is set up so that this unfair situation only gets worse each tax year so that the difference between you and your rich neighbor on the waterfront will get larger and larger. And, those who benefit from this unfair system will make sure it never changes.

  8. Ed Vaske says:

    Good article. Ohio has taxed most of the business right out of the state. If it is not the state doing it, it is the local cities and the school districts. They think the people have a money tree.

  9. Bob Falbee says:

    I live on Long Island NY. And we have 8.75 sales tax, my property and School tax is 8,000 a year. And it go’s up every year. Not to mention, the highest Electric, Heating Oil, Gas, and Water in the country. O” I almost forgot, income tax. On salary, State, City, Local. If your starting out, forget buying a house. They start at around 350,000, to 500,000. And these are just regular house’s. Thats why so many young people are leaving NY. They just can’t live here, and hope to own a home. And you can bet, the powers that be will just keep those Tax’s coming.

    • andyI says:

      I live on long island new york I a own simple small house I pay over $8000 on property taxes.the schools the police and all goverment officials get big salaries,the highest in the world they are bleeding us to death,and they are thiefs

  10. YankeeTom says:

    Hey I would not want Alaska to ” catch up ” if I were you. Keep the tax and spend democrats and republicans at bay. They will only steel your Liberty then your Money.

  11. Bob Rush says:

    Try living in mi. if you thnk taxes are bad in your state

  12. Anonymous says:

    Indiana taxes are too low. I mean there’s almost no cigarette tax!

  13. Richard says:

    Indiana taxes may be low but whata ya pay to license a car or truck??

  14. Sara says:

    New York has lost many people and companies because of the taxes. that’s why I made my way to this site, born and raised in NY but I do believe it is time to start my search for more for less or atleast be able to enjoy what I work so hard for.

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