(The Center Square) – The low tax burden for Tennessee residents is being overcome by just one state, according to a new report from WalletHub personal finance website.
A taxpayer’s tax burden reflects the proportion of total personal income that residents pay in state and local taxes. WalletHub’s study found that Tennessee’s overall tax rate for individuals was 5.74%, the second lowest in the United States
WalletHub compared the 50 states across three tax loads and added the results to get the total tax load for each state. These tax burdens were property tax as a share of personal income, individual income tax as a share of personal income and total sales and consumption tax as a share of personal income.
Tennessee ranked third in property tax in the United States at 1.70% and lowest in individual income tax, but ranked 14th in total sales and excise tax at 3.96%.
Alaska and its total tax burden of 5.10% was the only state whose total tax burden was below Tennessee. Wyoming with 6.14%, Delaware with 6.21% and New Hampshire with 6.84% rounded out the five lowest tax rates in the USA
According to WalletHub, Alaska, Florida, Nevada, South Dakota, Texas, Washington, and Wyoming did not have individual income tax rates.
Alabama had the lowest property tax rate in the US at 1.41% and Oregon had the lowest sales and excise tax rate at 1.06%.
New York at 12.79%, Hawaii at 12.19%, Vermont at 10.75%, Maine at 10.5%, and Connecticut at 10.44% had the highest total tax rates.