The 10 Highest Tax States in 2025
Ranked by combined state income, sales and property tax on a $100,000 household ($400,000 home). Illinois takes #1 at $15,330 — $11,450 more per year than the lowest-burden state (Wyoming).
Methodology — what "tax burden" means here
- 1.Income tax — 2025 state brackets applied to $100,000 (MFJ) from the site's central
stateIncomeTax.tsconfig. - 2.Sales tax — state base rate × $40,000 of taxable consumer spending. Local/county sales tax is excluded.
- 3.Property tax — state average effective rate × $400,000 home value. Sources: Tax Foundation + US Census Bureau.
- 4.Not included — federal income tax, FICA, local income tax (e.g., NYC, Portland), estate/inheritance tax, vehicle/excise tax.
Top 10 highest-burden states for 2025
Ranked by total state-level tax dollars paid under the scenario below. Numbers are live-computed at build time from the site's central tax data — state income tax brackets, state base sales tax rate, and average effective property tax rate.
| Rank | State | Income tax | Sales tax | Property tax | Total | % of income |
|---|---|---|---|---|---|---|
| #1 | Illinois Flat 4.95% | $4,950 | $2,500 | $7,880 | $15,330 | 15.33% |
| #2 | Connecticut Progressive up to 4.50% | $4,000 | $2,540 | $7,800 | $14,340 | 14.34% |
| #3 | New Jersey Progressive up to 5.53% | $2,750 | $2,650 | $8,920 | $14,320 | 14.32% |
| #4 | Vermont Progressive up to 6.60% | $4,130 | $2,400 | $7,120 | $13,650 | 13.65% |
| #5 | Kansas Progressive up to 5.58% | $5,405 | $2,600 | $5,280 | $13,285 | 13.29% |
| #6 | Maine Progressive up to 6.75% | $6,285 | $2,200 | $4,720 | $13,205 | 13.20% |
| #7 | Minnesota Progressive up to 6.80% | $6,163 | $2,750 | $4,200 | $13,113 | 13.11% |
| #8 | Wisconsin Progressive up to 5.30% | $4,518 | $2,000 | $6,440 | $12,958 | 12.96% |
| #9 | Nebraska Progressive up to 5.20% | $4,321 | $2,200 | $6,320 | $12,841 | 12.84% |
| #10 | New York Progressive up to 5.50% | $5,168 | $1,600 | $5,840 | $12,608 | 12.61% |
Scenario: $100,000 household income (married filing jointly), $400,000 home value, $40,000 annual taxable consumer spending.
How each high-burden state stacks up
Illinois
- Income tax: $4,950 — marginal rate 4.95%
- Sales tax: $2,500 at 6.25% state rate
- Property tax: $7,880 at 1.97% effective rate
Connecticut
- Income tax: $4,000 — marginal rate 4.50%
- Sales tax: $2,540 at 6.35% state rate
- Property tax: $7,800 at 1.95% effective rate
New Jersey
- Income tax: $2,750 — marginal rate 5.53%
- Sales tax: $2,650 at 6.63% state rate
- Property tax: $8,920 at 2.23% effective rate
Vermont
- Income tax: $4,130 — marginal rate 6.60%
- Sales tax: $2,400 at 6.00% state rate
- Property tax: $7,120 at 1.78% effective rate
Kansas
- Income tax: $5,405 — marginal rate 5.58%
- Sales tax: $2,600 at 6.50% state rate
- Property tax: $5,280 at 1.32% effective rate
Maine
- Income tax: $6,285 — marginal rate 6.75%
- Sales tax: $2,200 at 5.50% state rate
- Property tax: $4,720 at 1.18% effective rate
Minnesota
- Income tax: $6,163 — marginal rate 6.80%
- Sales tax: $2,750 at 6.88% state rate
- Property tax: $4,200 at 1.05% effective rate
Wisconsin
- Income tax: $4,518 — marginal rate 5.30%
- Sales tax: $2,000 at 5.00% state rate
- Property tax: $6,440 at 1.61% effective rate
Nebraska
- Income tax: $4,321 — marginal rate 5.20%
- Sales tax: $2,200 at 5.50% state rate
- Property tax: $6,320 at 1.58% effective rate
New York
- Income tax: $5,168 — marginal rate 5.50%
- Sales tax: $1,600 at 4.00% state rate
- Property tax: $5,840 at 1.46% effective rate
What the high-burden cluster has in common
The states at the top of the 2025 high-burden list cluster around two archetypes. The first is the northeastern high-services state — New Jersey, Connecticut, New York, Illinois, Massachusetts — where progressive income tax combines with high property-tax rates to fund expensive schools, infrastructure, and pension obligations. The second is the Pacific coast progressive state — California, Oregon, Hawaii — where top income tax rates alone often exceed 10% and sales tax is layered on heavily. Property tax varies within these clusters: California (Prop 13 capped at 1%) and Hawaii (0.27%) are low by national standards, but high home values offset the low rate.
If you are already in a high-burden state, the tactical question isn't "should I move" but "am I optimising what I can control": maximising tax-advantaged retirement contributions (401(k)/HSA/IRA), timing large capital gains to a year when you can establish residency elsewhere, and (for business owners) evaluating S-corp structures and passthrough entity taxes (PTET) that several of these states now offer as a SALT-cap workaround. Our state tax comparison tool and state tax ranking tool let you model the savings from a move against your specific income.
Frequently asked questions
Which state has the highest total tax burden in 2025?
Under our $100,000 household scenario, Illinois has the highest combined state tax burden at $15,330 (15.33% of income). Connecticut is #2 at $14,340. The gap versus the lowest-tax state (Wyoming at $3,880) is $11,450 per year — enough that relocation is a serious financial consideration for many high-tax-state residents.
Is California really the highest-tax state?
California has the highest top marginal income tax rate (13.3% on income over $1m — 12.3% base plus a 1% Mental Health Services surcharge, both already included in that 13.3% figure). Add California's uncapped 1.2% State Disability Insurance (SDI) payroll tax and the effective top marginal rate on wages reaches about 14.5%. Property tax, by contrast, is capped at 1% of assessed value under Proposition 13. At middle incomes California often falls behind New Jersey, Illinois and New York on total burden because property tax on even a modest home in NJ or IL can exceed $8,000 a year. California's rank rises sharply at high incomes where the progressive brackets dominate.
Why does New Jersey appear in high-tax lists so often?
New Jersey combines the highest average effective property tax rate in the country (2.23%) with progressive income tax brackets up to 10.75% and a state sales tax of 6.625%. On a $400,000 home the property-tax line alone is around $8,900 — before any income or sales tax. Low-value housing reduces the gap, but NJ is structurally a top-5 high-tax state at almost any income level.
Does the SALT deduction cap make high-tax states even worse?
Yes, though less than before. The Tax Cuts and Jobs Act capped the State and Local Tax (SALT) deduction at $10,000 in 2018. The One Big Beautiful Bill Act (OBBBA) raised the cap to $40,000 ($20,000 MFS) for 2025, with a phaseout for modified AGI above $500,000 ($250,000 MFS) that reverts toward the $10,000 floor for high earners. A New Jersey homeowner paying $15,000 in combined state income and property tax now gets full federal benefit, but a high earner above the phaseout threshold still hits the old $10,000 ceiling — widening the gap versus low-tax states for top-bracket filers.
If my state is on this list, should I consider moving?
The annualised tax saving from moving to a low-burden state can exceed $10,000 for a middle-income homeowning household. But the decision depends on housing cost (CA/NY/NJ have expensive houses but low property-tax rates; TX/NH have cheap houses but high rates), employer flexibility, state estate tax exposure at death, and local income taxes you might trigger in a new city. Run the numbers on our state tax ranking tool with your real income and home value before taking any ranking at face value.
Sources
See the lowest-tax states 2025 →
The flip side — where a $100k household pays the least in combined state tax.
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