Here's how much Americans pay in taxes in every state

If you want to hang onto more of your hard-earned money, you should consider living in a state with low taxes. In fact, you might be surprised at how much money you can save depending on where you live.

Related: Best and Worst States to Retire Rich

To find out how much the total tax burden varies across the U.S., GOBankingRates examined the average amount residents in all 50 states and the District of Columbia pay in income, property, sales and gas taxes. The median household income in the U.S. is $56,516, based on 2015 Census Bureau figures. GOBankingRates found that average total taxes paid is $14,998.83, which means about 26 percent of American taxpayers' income typically goes toward taxes.

Depending on where you live, you could pay a lot more — or less — in taxes.

Click through to see where you could pay less in taxes:

Best and worst states for retirement
See Gallery
Best and worst states for retirement

1. Florida 

You knew it had to be high on the list, didn't you? In terms of affordability, Florida topped the list while it placed fifth in terms of quality of life, overcoming its 20th-ranked healthcare rating.

2. Colorado

Ranked second in healthcare while quality of life came in 8th place, Colorado is constrained by its 23rd-place ranking in affordability.

3. South Dakota

The home of Mount Rushmore is the second most affordable state and ranked sixth when it came to healthcare, but can't break the top half in quality of life (ranked 32nd).

4. Iowa

Not typically thought of as a retirement destination, Iowa has decent rankings across the board (9th in healthcare, 11th in quality of life and 26th in affordability).​​​​​​​

5. Virginia

Quality of life ranks well in Virginia (9th) while affordability and healthcare rankings are above average (18th and 21st respectively).

The next five desirable retirement states are, in order:


New Hampshire




46. Arkansas

Dead last in quality of life and 45th in healthcare, Arkansas is pulled up by its 20th-place showing in affordability.​​​​​​​

47. Mississippi

The same principle applies to Mississippi, but even more so. The state is 49th in quality of life and last in healthcare, but it ranks 10th in affordability.

48. Rhode Island

Healthcare is above average (22nd), but quality of life and affordability are poor at 46th and 48th place, respectively.

49. New Jersey

The least affordable state in the union also has below average rankings in quality of life (28th) and healthcare (33rd).​​​​​​​

50. Kentucky

Kentucky ranks 47th in both quality of life and healthcare and only 38th in affordability, earning the Bluegrass State WalletHub's least desirable retirement state ranking for 2018.​​​​​​​


Methodology: To generate the tax bill in every state, GOBankingRates surveyed four key taxes: income taxes, property taxes, sales taxes and gas taxes. Income tax bills include both state and federal taxes and are based on 2015 Census Bureau median household income figures. Property taxes were calculated using each state's rate and Zillow's median home value index. Gas taxes are based on each state's rate and an average annual consumption of 656 gallons. Sales taxes were calculated using each state's tax rate and Americans' average daily spending of $84.

This article originally appeared on Here's How Much Americans Pay in Taxes in Every State

More from GoBankingRates:
States Most and Least Likely to Live Paycheck to Paycheck
The Best and Worst States for Your Money in 2017
Best and Worst Ways States Use Your Tax Dollars

2018 Tax Reform Impact: What You Should Know

Congress has passed the largest piece of tax reform legislation in more than three decades. The bill went into place on January 1, 2018, which means that it will affect the taxes of most taxpayers for the 2018 tax year.

Read More

Brought to you by

10 Things You Won't Believe Are Taxed

From Fantasy Football to cancelled debt, here are 10 things taxed by the IRS that might surprise you.

Read More

Brought to you by

Death in the Family

The IRS demands a final accounting, and it's up to the executor or survivors to file the paperwork. Here's what you need to know about the deceased's final tax return, reporting income and deductions, inheritance and more.

Read More

Brought to you by

Tax Tips for Uber Driver-Partners: Understanding Your Taxes

As an Uber driver-partner, you’re an independent contractor, not an Uber employee. The difference is huge, especially at tax time. Follow these tips to report your income accurately and minimize your taxes.

Read More

Brought to you by
Read Full Story
Your resource on tax filing
Tax season is here! Check out the Tax Center on AOL Finance for all the tips and tools you need to maximize your return.

Want more news like this?

Sign up for Finance Report by AOL and get everything from business news to personal finance tips delivered directly to your inbox daily!

Subscribe to our other newsletters

Emails may offer personalized content or ads. Learn more. You may unsubscribe any time.