Depending on your income in 2021, you may be feeling the pain of paying your taxes. Perhaps, you hurt when you look at your paychecks and see all the state and federal taxes being withheld. Some of you may feel a bit more pain based on the state where you live, how you earn your income, and whether you own a home. The overall tax burden can vary widely from state to state.
While seven states boast of not having an income tax, this doesn't mean you get to live tax-free. Those states have to fund their budgets somehow. If you were wondering, the seven states without an income tax are Nevada, Washington, South Dakota, Texas, Florida, Wyoming, and Alaska. Keep reading to find the five states with the lowest overall tax burden for their residents.
Income taxes are just one part of the overall tax burden of living in a state. Your tax burden at the state level can vary widely depending on your financial circumstances. Your tax burden is the proportion of your total personal income required to cover your state and local taxes. The most common types of state and local taxes are personal income taxes, sales taxes, and of course, property taxes.