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The State Of Florida Has The 5th Lowest Tax Burden In The Country

By Joe Winner

It’s no secret that Florida is lighter on tax payers than most other states. It’s why so many people have come here to retire. Defer your income into a retirement account, move to Florida, take it out with no state taxes. As Jerry Seinfeld once said “My parents didn’t want to move to Florida, but they turned sixty and that’s the law.” But Florida isn’t just for retirees. Working residents have some advantages as well.

The personal-finance website WalletHub today released its 2023 Tax Burden by State report, in order to determine which states tax their residents most aggressively. WalletHub compared the 50 states based on the three components of state tax burden – property taxes, individual income taxes, and sales and excise taxes – as a share of total personal income. Here’s how Florida ranks.

Tax Burden in Florida (1=Highest, 25=Avg.):
  • 46th – Overall Tax Burden (6.33%)
  • 25th – Property Tax Burden (2.75%)
  • 44th – Individual Income Tax Burden (0.00%)
  • 18th – Total Sales & Excise Tax Burden (3.58%)

So even though for homeowners here in Florida our property values have gone up, and insurance rates have gone up, but the taxes  – not as much. We’re middle of the pack. That Homestead exemption helps out a lot. And let’s not forget that 0% individual income tax.

Do politics play a part in Florida tax vs. other states?

Oh, you bet they do. There’s a pretty clear graphic that shows that coming up.

 

  • Main Findings

    Source: WalletHub

  • Overall Tax Burden by State

    Overall Rank*  State Total Tax Burden
    (%)         		 Property Tax Burden
    (%)         		 Individual Income Tax Burden
    (%)         		 Total Sales & Excise Tax Burden
    (%)     
    1 New York 12.47% 4.36%
    (5)    		 4.72%
    (1)    		 3.39%
    (24)
    2 Hawaii 12.31% 2.74%
    (26)    		 2.86%
    (10)    		 6.71%
    (1)
    3 Maine 11.14% 5.33%
    (1)    		 2.52%
    (14)    		 3.29%
    (26)
    4 Vermont 10.28% 4.98%
    (2)    		 2.07%
    (27)    		 3.23%
    (27)
    5 Connecticut 9.83% 4.24%
    (6)    		 2.92%
    (9)    		 2.67%
    (40)
    6 New Jersey 9.76% 4.88%
    (4)    		 2.36%
    (17)    		 2.52%
    (43)
    7 Maryland 9.44% 2.66%
    (31)    		 4.21%
    (2)    		 2.57%
    (41)
    8 Minnesota 9.41% 2.89%
    (22)    		 3.11%
    (6)    		 3.41%
    (23)
    9 Illinois 9.38% 3.66%
    (10)    		 2.27%
    (22)    		 3.45%
    (22)
    10 Iowa 9.15% 3.40%
    (14)    		 2.41%
    (16)    		 3.34%
    (25)
    11 Rhode Island 9.07% 4.17%
    (7)    		 1.93%
    (33)    		 2.97%
    (33)
    12 California 8.89% 2.79%
    (23)    		 3.05%
    (7)    		 3.05%
    (31)
    13 Nebraska 8.84% 3.67%
    (9)    		 2.19%
    (24)    		 2.98%
    (32)
    14 New Mexico 8.83% 1.95%
    (43)    		 1.26%
    (39)    		 5.62%
    (3)
    15 Kansas 8.71% 3.08%
    (17)    		 2.07%
    (27)    		 3.56%
    (19)
    16 Ohio 8.65% 2.74%
    (26)    		 2.28%
    (21)    		 3.63%
    (16)
    17 Wisconsin 8.62% 3.12%
    (16)    		 2.63%
    (13)    		 2.87%
    (37)
    18 Indiana 8.58% 2.22%
    (39)    		 2.73%
    (12)    		 3.63%
    (16)
    19 Mississippi 8.56% 2.76%
    (24)    		 1.49%
    (38)    		 4.31%
    (8)
    20 Massachusetts 8.48% 3.42%
    (13)    		 3.22%
    (4)    		 1.84%
    (45)
    21 Kentucky 8.43% 1.93%
    (44)    		 3.04%
    (8)    		 3.46%
    (21)
    22 Arkansas 8.40% 1.68%
    (48)    		 2.04%
    (29)    		 4.68%
    (5)
    23 West Virginia 8.36% 2.23%
    (38)    		 2.43%
    (15)    		 3.70%
    (14)
    24 Colorado 8.28% 3.05%
    (19)    		 2.04%
    (29)    		 3.19%
    (28)
    25 Washington 8.24% 2.58%
    (32)    		 0.00%
    (44)    		 5.66%
    (2)
    26 Virginia 8.23% 2.97%
    (21)    		 2.82%
    (11)    		 2.44%
    (44)
    27 Utah 8.08% 2.34%
    (37)    		 2.20%
    (23)    		 3.54%
    (20)
    28 Louisiana 8.05% 1.80%
    (46)    		 1.66%
    (37)    		 4.59%
    (6)
    29 Texas 8.01% 4.00%
    (8)    		 0.00%
    (44)    		 4.01%
    (11)
    30 Pennsylvania 7.95% 2.71%
    (28)    		 2.32%
    (19)    		 2.92%
    (36)
    31 Oregon 7.80% 3.07%
    (18)    		 3.62%
    (3)    		 1.11%
    (48)
    32 Nevada 7.69% 2.13%
    (41)    		 0.00%
    (44)    		 5.56%
    (4)
    33 Idaho 7.64% 2.35%
    (35)    		 2.15%
    (25)    		 3.14%
    (29)
    34 Arizona 7.62% 2.35%
    (35)    		 1.23%
    (40)    		 4.04%
    (9)
    35 North Carolina 7.60% 2.12%
    (42)    		 2.35%
    (18)    		 3.13%
    (30)
    36 Georgia 7.46% 2.58%
    (32)    		 2.11%
    (26)    		 2.77%
    (38)
    37 South Carolina 7.44% 2.69%
    (29)    		 2.03%
    (31)    		 2.72%
    (39)
    38 Michigan 7.40% 3.02%
    (20)    		 1.81%
    (35)    		 2.57%
    (41)
    39 Alabama 7.35% 1.39%
    (50)    		 1.93%
    (33)    		 4.03%
    (10)
    40 North Dakota 7.34% 2.54%
    (34)    		 0.80%
    (41)    		 4.00%
    (12)
    41 Oklahoma 7.12% 1.76%
    (47)    		 1.69%
    (36)    		 3.67%
    (15)
    42 Missouri 7.11% 2.16%
    (40)    		 1.99%
    (32)    		 2.96%
    (34)
    43 Montana 6.93% 3.40%
    (14)    		 2.32%
    (19)    		 1.21%
    (47)
    44 South Dakota 6.69% 2.69%
    (29)    		 0.00%
    (44)    		 4.00%
    (12)
    45 Wyoming 6.42% 3.47%
    (12)    		 0.00%
    (44)    		 2.95%
    (35)
    46 Florida 6.33% 2.75%
    (25)    		 0.00%
    (44)    		 3.58%
    (18)
    47 Tennessee 6.22% 1.66%
    (49)    		 0.02%
    (43)    		 4.54%
    (7)
    48 New Hampshire 6.14% 4.94%
    (3)    		 0.13%
    (42)    		 1.07%
    (50)
    49 Delaware 6.12% 1.88%
    (45)    		 3.15%
    (5)    		 1.09%
    (49)
    50 Alaska 5.06% 3.59%
    (11)    		 0.00%
    (44)    		 1.47%
    (46)

    Note: *No. 1 = Highest

  • Property Tax as % of Personal Income

    Highest
    • 1. Maine
    • 2. Vermont
    • 3. New Hampshire
    • 4. New Jersey
    • 5. New York
    Property Tax as % of Personal Income
    Lowest
    • 46. Louisiana
    • 47. Oklahoma
    • 48. Arkansas
    • 49. Tennessee
    • 50. Alabama
    Best State vs. Worst State: 4x Difference
    Maine vs. Alabama

  • Individual Income Tax as % of Personal Income

    Highest
    • 1. New York
    • 2. Maryland
    • 3. Oregon
    • 4. Massachusetts
    • 5. Delaware
    Individual Income Tax as % of Personal Income
    Lowest
    • T-44. Alaska
    • T-44. Florida
    • T-44. Nevada
    • T-44. South Dakota
    • T-44. Texas
    • T-44. Washington
    • T-44. Wyoming

  • Total Sales & Excise Tax as % of Personal Income

    Highest
    • 1. Hawaii
    • 2. Washington
    • 3. New Mexico
    • 4. Nevada
    • 5. Arkansas
    Total Sales & Excise Tax as % of Personal Income
    Lowest
    • 46. Alaska
    • 47. Montana
    • 48. Oregon
    • 49. Delaware
    • 50. New Hampshire
    Best State vs. Worst State: 6x Difference
    Hawaii vs. New Hampshire

  • Blue States vs. Red States

    blue vs red image tax burden 2023

  • Methodology

    In order to determine the states that tax their residents the most and least aggressively, WalletHub compared the 50 states across the following three tax burdens and added the results to obtain the overall tax burden for each state:

    • Property Tax as a Share of Personal Income
    • Individual Income Tax as a Share of Personal Income
    • Total Sales & Excise Tax as a Share of Personal Income

    Sources: Data used to create this ranking were collected from the Tax Policy Center.

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