5 States Where You’ll Pay the Most Taxes (And 5 Where You’ll Pay the Least)

Tax Day is just over a week away, and both individual taxpayers and couples filing jointly are pulling together all the documents they need to prepare their returns.

But how much will you end up paying in state and federal taxes? Whether you can keep more cash in your wallet depends partially on where you live and how you're filing.

FinanceBuzz analyzed data from the U.S. Census Bureau and combined it with federal and state tax rates to calculate the tax burden residents face in each state as a percentage of median annual income.

Here are the states with the highest and lowest rates for individual taxpayers, followed by the rankings for couples filing jointly.

Total effective tax rate: 24.08%

Oregon residents face the highest tax burden for individual taxpayers, with 24.08% of their annual income owed in taxes for 2024 (filing in 2025).

According to the FinanceBuzz study, a big contributor is the effective state-level tax rate. At 7.01%, this is higher than any other state in the country.

Oregon relies heavily on its personal income tax to generate revenue for the state. On the other hand, it's one of five states with no sales tax.

Total effective tax rate: 23.62%

If you hope to retire early, Massachusetts won't make it easy on your efforts to build a nest egg. The Bay State comes in second for all U.S. states with the highest tax burden.

A big reason for this is the state's individual median income. The highest across the country, at $76,732, means residents of Massachusetts are put in tax brackets where a more significant portion of their income is taxed at higher rates. This also means that residents owe the most in federal taxes out of any state.

Total effective tax rate: 23.27%

In Hawaii, residents owe 23.27% of their annual income in taxes for 2024. In addition to high taxes, the Aloha State also has the highest cost of living among U.S. states, according to the Missouri Economic Research and Information Center.

The state's remote location and reliance on imported goods push costs higher for residents.

Total effective tax rate: 22.33%

Those filing as individuals in Maryland face a high tax burden of 22.33%. However, there is a silver lining for some retirees worried about taxes.

The state doesn't tax Social Security income, and income from IRAs is fully taxed.  Income from pensions and private employee retirement plans is taxed as regular income, but taxpayers who are 65 years or older can claim a deduction against it.

Total effective tax rate: 21.86%

Residents of New York owe 21.86% of their annual income in taxes for 2024. And while the state faces a high tax rate, it is moderately friendly for retirees.

New York doesn't tax Social Security income. Income from retirement accounts or private pensions is also is deductible up to $20,000 for retirees. But the state also has some of the highest sales and property taxes across the nation.

While tax burdens are sky-high in some states, others give taxpayers a big break. Here are the places where individual taxpayers pay the least in taxes.

Total effective tax rate: 16.58%

Florida has the lowest tax burden for individual filers among all the states. In fact, it's one of nine states that have no tax on income whatsoever. This is a big factor in a lower overall rate.

In addition to one of the lowest tax burdens, Florida has no estate or inheritance tax.

Total effective tax rate: 16.60%

In Tennessee, residents owe just 16.60% of their annual income in taxes, and there is no state income tax. However, watch out for the state's sales taxes. General sales taxes in the Volunteer State account for approximately 60% of the state's revenue.

Total effective tax rate: 16.60%

Like Tennessee, those in Nevada will pay 16.60% of their median annual income in taxes for 2024. The state also has no state income tax and looks to other sources for its revenue. For example, the state relies on taxes from gambling and a high sales tax.

Total effective tax rate: 16.63%

South Dakota also has no state income tax, and only 16.63% of residents' annual income is owed in taxes. This means retirement income such as pensions and Social Security are not taxed, making the state friendly for retirees.

Total effective tax rate: 16.77%

Wyoming rounds out the list of states with low tax burdens that are largely due to not having an individual income tax. Residents owe just 16.677% of their annual income in taxes for 2024. Additionally, the state has a low property tax rate.

Taxes for couples who file jointly are calculated differently than taxes for individuals.

Here are the top five most expensive states and their rates for couples filing jointly:

• Massachusetts: 23.47%
• Hawaii: 23.17%
• Maryland: 22.71%
• Oregon: 22.63%
• New Jersey: 21.96%

Here are the top five least expensive states and their rates for couples filing jointly:

• Tennessee: 15.64%
• Wyoming: 15.64%
• Florida: 15.72%
• South Dakota: 15.85%
• Nevada: 15.87%

Living in a place with low taxes is a key advantage if you want to build wealth. So, it's important to consider tax rates when deciding where to settle down.

You can save money living in a state with low income taxes, but you will also want to factor in sales or other types of taxes.

Also, remember that tax laws can vary from state to state in terms of how much retirement income — including income from 401(k) plans and IRAs, Social Security, and pensions — is subject to taxes.