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Tax

The 20 best states to be poor

By Editorial Staff
June 19, 2024 5:30 AM
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Low-income earners are already seeing a large portion of their paycheck go toward taxes — but in some states, that sacrifice is less painful than in others. 

WalletHub recently ranked all 50 states and Washington, D.C., to determine where people in different income brackets hand over the most and least on sales and excise taxes, property taxes and income taxes, measuring the share of a resident's income that is contributed to taxes.

"The wealthy and less fortunate are both subject to taxes, but unfortunately people who are not as well off can end up getting hit harder due to the regressive nature of many taxes," Wallethub analyst Cassandra Happe said in a statement. "Living in a state where your income bracket isn't squeezed as hard during tax season can save you a lot of money. A few states even cut costs dramatically by not charging income tax altogether."

Read more: The 20 best states to be rich

Low-income earners in the top state of this ranking have a 6.93% total tax rate as a percentage of income. 

Scroll through to learn more about the states with the lowest tax burden on low-income residents.

Source: WalletHub

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North Carolina ranked 20th with an individual income tax burden of 9.67%.
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Wyoming ranked 19th with an individual income tax burden of 9.43%.
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New Jersey ranked 18th with an individual income tax burden of 9.37%.
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Massachusetts ranked 17th with an individual income tax burden of 9.13%.
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Colorado ranked 16th with an individual income tax burden of 9.01%.
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Virginia ranked 15th with an individual income tax burden of 8.73%.
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Maine tied for 13th with an individual income tax burden of 8.68%.
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Idaho tied for 13th with an individual income tax burden of 8.68%.
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South Carolina ranked 12th with an individual income tax burden of 8.67%.
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North Dakota ranked 11th with an individual income tax burden of 8.64%.
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Washington, D.C. ranked 10th with an individual income tax burden of 8.12%.
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Michigan ranked 9th with an individual income tax burden of 8.10%.
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New Hampshire ranked 8th with an individual income tax burden of 8.06%.
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Missouri ranked 7th with an individual income tax burden of 7.93%.
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New Mexico ranked 6th with an individual income tax burden of 7.70%.
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Delaware ranked 5th with an individual income tax burden of 7.67%.
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Minnesota ranked 4th with an individual income tax burden of 7.35%.
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Vermont ranked 3rd with an individual income tax burden of 7.30%.
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Montana ranked 2nd with an individual income tax burden of 7.28%.
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Alaska ranked 1st with an individual income tax burden of 6.93%.
Editorial Staff
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