Delaware has lowest relative income-tax obligation in the Contiguous United States
According to an article by Wallethub, in 2018 Delaware is the #1 Lowest in the Contiguous United States for "relative income-tax obligations"
Sure, Alaska has us beat but it's cold up there, far from family and not located in the Contiguous United States.
In comparison, our neighboring states rank much lower in the list.
- New Jersey comes in at #43
- Pennsylvania is #41
- Maryland #36
- New York #48
If you're thinking of retiring on the East Coast, Look no further than Delaware
Taxes by State
|
Overall Rank (1=Lowest) |
State |
Effective Total State & Local Tax Rates on Median U.S. Household* |
Annual State & Local Taxes on Median U.S. Household* |
% Difference Between State & U.S. Avg.** |
Annual State & Local Taxes on Median State Household*** |
Adjusted Overall Rank (based on Cost of Living Index) |
|---|---|---|---|---|---|---|
| 1 | Alaska | 5.67% | $3,164 | -47.26% | $4,353 | 5 |
| 2 | Delaware | 6.11% | $3,407 | -43.21% | $3,909 | 1 |
| 3 | Montana | 7.29% | $4,066 | -32.23% | $3,911 | 4 |
| 4 | Nevada | 7.44% | $4,145 | -30.90% | $4,103 | 6 |
| 5 | Wyoming | 7.45% | $4,155 | -30.75% | $4,417 | 2 |
| 6 | Tennessee | 7.98% | $4,449 | -25.84% | $3,667 | 3 |
| 7 | Idaho | 8.48% | $4,730 | -21.16% | $4,216 | 7 |
| 8 | California | 8.77% | $4,888 | -18.51% | $7,167 | 36 |
| 9 | Florida | 8.83% | $4,921 | -17.97% | $4,373 | 9 |
| 10 | South Carolina | 9.02% | $5,030 | -16.16% | $4,278 | 11 |
| 11 | Oregon | 9.20% | $5,129 | -14.51% | $5,677 | 34 |
| 12 | Utah | 9.23% | $5,144 | -14.25% | $5,902 | 10 |
| 13 | Colorado | 9.27% | $5,170 | -13.82% | $6,100 | 13 |
| 14 | Alabama | 9.40% | $5,241 | -12.64% | $4,177 | 8 |
| 15 | Arizona | 9.50% | $5,299 | -11.67% | $4,977 | 12 |
| 16 | South Dakota | 9.75% | $5,439 | -9.34% | $4,757 | 16 |
| 17 | North Dakota | 9.84% | $5,488 | -8.53% | $5,493 | 18 |
| 18 | District of Columbia | 10.00% | $5,574 | -7.09% | $8,811 | 46 |
| 19 | New Hampshire | 10.27% | $5,725 | -4.57% | $7,221 | 33 |
| 20 | Hawaii | 10.33% | $5,762 | -3.96% | $8,277 | 51 |
| 21 | West Virginia | 10.39% | $5,791 | -3.48% | $4,343 | 19 |
| 22 | Louisiana | 10.39% | $5,795 | -3.41% | $4,757 | 17 |
| 23 | Georgia | 10.54% | $5,876 | -2.06% | $5,237 | 14 |
| 24 | North Carolina | 10.64% | $5,934 | -1.09% | $5,167 | 20 |
| 25 | Oklahoma | 10.75% | $5,993 | -0.11% | $4,848 | 15 |
| 26 | New Mexico | 10.82% | $6,031 | 0.53% | $5,038 | 23 |
| 27 | Virginia | 10.87% | $6,061 | 1.03% | $7,276 | 27 |
| 28 | Texas | 11.04% | $6,156 | 2.61% | $5,347 | 21 |
| 29 | Vermont | 11.04% | $6,158 | 2.64% | $6,800 | 41 |
| 30 | Missouri | 11.28% | $6,291 | 4.86% | $5,435 | 22 |
| 31 | Minnesota | 11.57% | $6,453 | 7.56% | $7,085 | 31 |
| 32 | Massachusetts | 11.61% | $6,470 | 7.85% | $9,390 | 45 |
| 33 | Washington | 11.68% | $6,514 | 8.57% | $8,023 | 37 |
| 34 | Maine | 11.75% | $6,554 | 9.24% | $6,133 | 42 |
| 35 | Indiana | 11.86% | $6,614 | 10.25% | $5,667 | 26 |
| 36 | Maryland | 11.96% | $6,666 | 11.12% | $9,552 | 44 |
| 37 | Kentucky | 12.06% | $6,723 | 12.06% | $5,293 | 29 |
| 38 | Mississippi | 12.21% | $6,810 | 13.51% | $4,954 | 24 |
| 39 | Arkansas | 12.30% | $6,858 | 14.32% | $5,142 | 25 |
| 40 | Kansas | 12.42% | $6,924 | 15.41% | $6,104 | 28 |
| 41 | Pennsylvania | 12.45% | $6,940 | 15.68% | $6,642 | 38 |
| 42 | Michigan | 12.81% | $7,145 | 19.09% | $5,843 | 30 |
| 43 | New Jersey | 12.87% | $7,175 | 19.59% | $11,237 | 47 |
| 44 | Iowa | 12.92% | $7,202 | 20.05% | $6,354 | 32 |
| 45 | Ohio | 13.09% | $7,300 | 21.68% | $6,081 | 35 |
| 46 | Wisconsin | 13.62% | $7,593 | 26.56% | $7,193 | 40 |
| 47 | Rhode Island | 13.69% | $7,634 | 27.26% | $8,697 | 48 |
| 48 | New York | 13.72% | $7,648 | 27.49% | $9,759 | 50 |
| 49 | Nebraska | 13.83% | $7,712 | 28.55% | $6,776 | 39 |
| 50 | Connecticut | 13.85% | $7,720 | 28.68% | $10,419 | 49 |
| 51 | Illinois | 14.89% | $8,299 | 38.34% | $8,330 | 43 |
*Assumes “Median U.S. Household” has an annual income of $55,754 (mean third quintile U.S. income); owns a home valued at $184,700 (median U.S. home value); owns a car valued at $24,000 (the highest-selling car of 2017); and spends annually an amount equal to the spending of a household earning the median U.S. income.
**National Average of State and Local Tax Rates = 10.78%
***Assumes “Median State Household” has an annual income equal to the mean third quintile income of the state; owns a home at a value equal to the median of the state; owns a car valued at $24,000 (the highest-selling car of 2017); and spends annually an amount equal to the spending of a household earning the median state income.
Red States vs. Blue States
State & Local Tax Breakdown
All effective tax rates shown below were calculated as a percentage of the mean third quintile U.S. income of $55,754 and based on the characteristics of the Median U.S. Household*.
|
State |
Effective Real-Estate Tax Rate |
Real-Estate Tax Rank ($) |
Effective Vehicle Property Tax Rate |
Vehicle Property Tax Rank ($) |
Effective Income Tax Rate |
Income Tax Rank ($) |
Effective Sales & Excise Tax Rate |
Sales & Excise Tax Rank ($) |
Effective Total State & Local Tax Rates on Median U.S. Household* |
|---|---|---|---|---|---|---|---|---|---|
| Alabama | 1.42% | 2 ($791) |
0.29% | 28 ($163) |
2.68% | 28 ($1,494) |
5.01% | 39 ($2,793) |
9.40% |
| Alaska | 3.93% | 33 ($2,190) |
0.00% | 1 ($0) |
0.10% | 6 ($56) |
1.65% | 4 ($918) |
5.67% |
| Arizona | 2.56% | 16 ($1,427) |
0.72% | 38 ($403) |
1.57% | 13 ($873) |
4.66% | 35 ($2,595) |
9.50% |
| Arkansas | 2.08% | 10 ($1,161) |
0.43% | 29 ($239) |
2.66% | 27 ($1,483) |
7.13% | 50 ($3,975) |
12.30% |
| California | 2.62% | 17 ($1,461) |
0.28% | 27 ($156) |
1.40% | 11 ($781) |
4.47% | 30 ($2,491) |
8.77% |
| Colorado | 1.90% | 7 ($1,058) |
0.77% | 40 ($428) |
2.54% | 25 ($1,414) |
4.07% | 24 ($2,269) |
9.27% |
| Connecticut | 6.70% | 48 ($3,733) |
1.09% | 47 ($609) |
2.25% | 19 ($1,255) |
3.81% | 18 ($2,123) |
13.85% |
| Delaware | 1.81% | 4 ($1,009) |
0.00% | 1 ($0) |
3.03% | 33 ($1,689) |
1.27% | 3 ($708) |
6.11% |
| District of Columbia | 1.84% | 5 ($1,026) |
0.00% | 1 ($0) |
3.72% | 46 ($2,072) |
4.44% | 28 ($2,475) |
10.00% |
| Florida | 3.38% | 27 ($1,885) |
0.00% | 1 ($0) |
0.00% | 1 ($0) |
5.45% | 44 ($3,037) |
8.83% |
| Georgia | 3.07% | 25 ($1,712) |
0.00% | 1 ($0) |
3.17% | 35 ($1,768) |
4.30% | 26 ($2,396) |
10.54% |
| Hawaii | 0.90% | 1 ($501) |
0.00% | 1 ($0) |
3.85% | 47 ($2,147) |
5.59% | 46 ($3,115) |
10.33% |
| Idaho | 2.52% | 13 ($1,404) |
0.00% | 1 ($0) |
2.13% | 16 ($1,185) |
3.84% | 20 ($2,141) |
8.48% |
| Illinois | 7.69% | 50 ($4,288) |
0.00% | 1 ($0) |
2.82% | 30 ($1,572) |
4.37% | 27 ($2,439) |
14.89% |
| Indiana | 2.88% | 23 ($1,606) |
0.54% | 33 ($300) |
3.71% | 45 ($2,068) |
4.73% | 36 ($2,640) |
11.86% |
| Iowa | 4.95% | 38 ($2,762) |
0.43% | 30 ($240) |
3.03% | 34 ($1,691) |
4.50% | 31 ($2,509) |
12.92% |
| Kansas | 4.63% | 37 ($2,580) |
0.89% | 43 ($495) |
1.78% | 15 ($994) |
5.12% | 40 ($2,855) |
12.42% |
| Kentucky | 2.83% | 21 ($1,579) |
0.52% | 31 ($292) |
4.87% | 51 ($2,716) |
3.83% | 19 ($2,135) |
12.06% |
| Louisiana | 1.68% | 3 ($934) |
0.04% | 25 ($24) |
2.17% | 18 ($1,212) |
6.50% | 49 ($3,624) |
10.39% |
| Maine | 4.38% | 35 ($2,444) |
1.03% | 45 ($576) |
2.54% | 26 ($1,416) |
3.80% | 17 ($2,117) |
11.75% |
| Maryland | 3.64% | 31 ($2,030) |
0.00% | 1 ($0) |
4.30% | 49 ($2,395) |
4.02% | 23 ($2,241) |
11.96% |
| Massachusetts | 4.01% | 34 ($2,238) |
0.97% | 44 ($540) |
3.67% | 44 ($2,046) |
2.95% | 6 ($1,646) |
11.61% |
| Michigan | 5.66% | 43 ($3,158) |
0.25% | 26 ($142) |
3.32% | 37 ($1,850) |
3.58% | 11 ($1,995) |
12.81% |
| Minnesota | 3.86% | 32 ($2,155) |
0.56% | 35 ($311) |
2.94% | 32 ($1,640) |
4.21% | 25 ($2,347) |
11.57% |
| Mississippi | 2.64% | 19 ($1,470) |
1.46% | 49 ($813) |
2.34% | 21 ($1,303) |
5.78% | 47 ($3,224) |
12.21% |
| Missouri | 3.30% | 26 ($1,842) |
1.08% | 46 ($600) |
2.91% | 31 ($1,625) |
3.99% | 22 ($2,224) |
11.28% |
| Montana | 2.82% | 20 ($1,570) |
0.55% | 34 ($307) |
2.76% | 29 ($1,541) |
1.16% | 2 ($646) |
7.29% |
| Nebraska | 6.05% | 45 ($3,371) |
0.69% | 36 ($383) |
2.53% | 24 ($1,410) |
4.57% | 32 ($2,548) |
13.83% |
| Nevada | 2.56% | 15 ($1,425) |
0.76% | 39 ($423) |
0.53% | 8 ($295) |
3.59% | 12 ($2,002) |
7.44% |
| New Hampshire | 7.24% | 49 ($4,038) |
0.77% | 41 ($432) |
0.60% | 9 ($335) |
1.65% | 5 ($920) |
10.27% |
| New Jersey | 7.96% | 51 ($4,437) |
0.00% | 1 ($0) |
1.40% | 11 ($781) |
3.51% | 9 ($1,957) |
12.87% |
| New Mexico | 2.53% | 14 ($1,408) |
0.00% | 1 ($0) |
2.16% | 17 ($1,204) |
6.13% | 48 ($3,419) |
10.82% |
| New York | 5.48% | 42 ($3,057) |
0.00% | 1 ($0) |
3.49% | 40 ($1,945) |
4.75% | 37 ($2,647) |
13.72% |
| North Carolina | 2.84% | 22 ($1,581) |
0.54% | 32 ($299) |
3.62% | 43 ($2,018) |
3.65% | 15 ($2,035) |
10.64% |
| North Dakota | 3.49% | 28 ($1,947) |
0.00% | 1 ($0) |
0.78% | 10 ($432) |
5.58% | 45 ($3,108) |
9.84% |
| Ohio | 5.18% | 40 ($2,890) |
0.00% | 1 ($0) |
3.34% | 38 ($1,862) |
4.57% | 33 ($2,548) |
13.09% |
| Oklahoma | 2.94% | 24 ($1,638) |
0.00% | 1 ($0) |
2.44% | 23 ($1,360) |
5.37% | 42 ($2,994) |
10.75% |
| Oregon | 3.53% | 30 ($1,970) |
0.00% | 1 ($0) |
4.74% | 50 ($2,640) |
0.93% | 1 ($519) |
9.20% |
| Pennsylvania | 5.14% | 39 ($2,867) |
0.00% | 1 ($0) |
3.90% | 48 ($2,174) |
3.40% | 8 ($1,898) |
12.45% |
| Rhode Island | 5.46% | 41 ($3,047) |
2.05% | 51 ($1,144) |
2.30% | 20 ($1,282) |
3.88% | 21 ($2,162) |
13.69% |
| South Carolina | 1.89% | 6 ($1,056) |
1.17% | 48 ($651) |
2.35% | 22 ($1,310) |
3.61% | 14 ($2,013) |
9.02% |
| South Dakota | 4.39% | 36 ($2,446) |
0.00% | 1 ($0) |
0.00% | 1 ($0) |
5.37% | 41 ($2,992) |
9.75% |
| Tennessee | 2.47% | 12 ($1,376) |
0.00% | 1 ($0) |
0.10% | 6 ($56) |
5.41% | 43 ($3,017) |
7.98% |
| Texas | 6.16% | 46 ($3,435) |
0.00% | 1 ($0) |
0.00% | 1 ($0) |
4.88% | 38 ($2,720) |
11.04% |
| Utah | 2.22% | 11 ($1,240) |
0.00% | 1 ($0) |
3.35% | 39 ($1,869) |
3.65% | 15 ($2,035) |
9.23% |
| Vermont | 5.89% | 44 ($3,285) |
0.00% | 1 ($0) |
1.61% | 14 ($896) |
3.55% | 10 ($1,977) |
11.04% |
| Virginia | 2.63% | 18 ($1,467) |
1.74% | 50 ($971) |
3.49% | 41 ($1,947) |
3.00% | 7 ($1,675) |
10.87% |
| Washington | 3.52% | 29 ($1,962) |
0.00% | 1 ($0) |
0.00% | 1 ($0) |
8.16% | 51 ($4,552) |
11.68% |
| West Virginia | 1.94% | 8 ($1,082) |
0.71% | 37 ($398) |
3.29% | 36 ($1,833) |
4.44% | 29 ($2,478) |
10.39% |
| Wisconsin | 6.46% | 47 ($3,602) |
0.00% | 1 ($0) |
3.56% | 42 ($1,985) |
3.60% | 13 ($2,006) |
13.62% |
| Wyoming | 2.03% | 9 ($1,130) |
0.77% | 41 ($432) |
0.00% | 1 ($0) |
4.65% | 34 ($2,593) |
7.45% |
*Assumes “Median U.S. Household” has an income equal to $55,754 (mean third quintile U.S. income); owns a home valued at $184,700 (median U.S. home value); owns a car valued at $24,000 (the highest-selling car of 2017); and spends annually an amount equal to the spending of a household earning the median U.S. income.
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