Where States Get (Some of) Their Money

States have to get their money somewhere, and while there are other sources of state income, three of the broadest citizen-facing revenue streams are property taxes, sales taxes, and income taxes.

Here’s how each state, plus the District of Columbia, breaks down across the three categories. Property tax information comes from WalletHub. Sales tax information comes from the Sales Tax Institute. Income tax information comes from NerdWallet.

The table is sorted by income tax, with states with a flat income tax (including those with no income tax) at the top, states with a gradient income tax at the bottom, and New Hampshire in the middle because New Hampshire’s income tax only applies to interest and dividends. There aren’t rankings for income taxes because I didn’t dive deep enough to figure out the median rate, and even ranking it that way would be imperfect.

StateEffective Real-Estate Tax Rate Sales Tax RateIncome Tax Rate RangeProperty Tax Rank (1 = High)Sales Tax Rank (1= High)
Tennessee0.71%7.00%0.00%372
Nevada0.60%6.85%0.00%437
Washington0.98%6.50%0.00%229
Texas1.80%6.25%0.00%713
Florida0.89%6.00%0.00%2816
South Dakota1.31%4.50%0.00%1736
Wyoming0.61%4.00%0.00%4241
Alaska1.19%0.00%0.00%1947
Pennsylvania1.58%6.00%3.07%1116
Indiana0.85%7.00%3.23%302
Michigan1.54%6.00%4.25%1416
Colorado0.51%2.90%4.55%4946
Illinois2.27%6.25%4.95%213
Utah0.63%4.85%4.95%4034
Massachusetts1.23%6.25%5.00%1813
Kentucky0.86%6.00%5.00%2916
North Carolina0.84%4.75%5.25%3135
New Hampshire2.18%0.00%5% (interest and dividends only)347
Ohio1.56%5.75%0%-4.797%1327
Delaware0.57%0.00%0%-6.6%4547
South Carolina0.57%6.00%0%-7%4516
Iowa1.57%6.00%0.33%-8.53%1216
Oklahoma0.90%4.50%0.5%-5%2736
California0.76%7.25%1%-13.3%361
Georgia0.92%4.00%1%-5.75%2641
Montana0.84%0.00%1%-6.9%3147
North Dakota0.98%5.00%1.1%-2.9%2232
Idaho0.69%6.00%1.125%-6.925%3816
New Jersey2.49%6.63%1.4%-10.75%18
Hawaii0.28%4.00%1.4%-11%5141
Missouri0.97%4.23%1.5%-5.4%2440
New Mexico0.80%5.13%1.7%-5.9%3531
Alabama0.41%4.00%2%-5%5041
Maryland1.09%6.00%2%-5.75%2116
Virginia0.82%4.30%2%-5.75%3339
Louisiana0.55%4.45%2%-6%4838
Arkansas0.62%6.50%2.0%-5.9%419
Nebraska1.73%5.50%2.46%-6.84%829
Arizona0.66%5.60%2.59%-8%3928
Mississippi0.81%7.00%3%-5%342
West Virginia0.58%6.00%3%-6.5%4416
Connecticut2.14%6.35%3%-6.99%412
Kansas1.41%6.50%3.1%-5.7%159
Vermont1.90%6.00%3.35%-8.75%516
Wisconsin1.85%5.00%3.44%-7.65%632
Rhode Island1.63%7.00%3.75%-5.99%102
New York1.72%4.00%4%-8.82%941
District of Columbia0.56%6.00%4%-8.95%4716
Oregon0.97%0.00%4.75%-9.9%2447
Minnesota1.12%6.88%5.35%-9.85%206
Maine1.36%5.50%5.8%-7.15%1629

There’s more digging that could be done on this—how these fit into the total pies of respective state revenue, how large state budgets are in total compared to citizens’ wealth/spending/income, how much sales tax revenue comes from out-of-state residents compared to in-state residents, etc. But at a high level, this is how these three taxes break down.

Editor. Occasional blogger. Seen on Twitter, often in bursts: @StuartNMcGrath
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