Americans paid an average of 9.8% of their income in state and local taxes in 2011.
The report, released Wednesday, comes from the nonpartisan Tax Foundation.
The Annual State-Local Tax Burden report says that taxpayers in Oklahoma paid 8.5% of their collective income.
The highest percentage is in New York at 12.6.
Tax Foundation Economist Liz Malm, says, “States have different tax burdens, just as they have different levels of services. For Americans to make informed judgments about benefits and costs of state-local government, the costs need to be known.”
Oklahoma residents shoulder the 39th highest state-local tax burden in the country.
The study’s key findings include:
- During the 2011 fiscal year, state-local tax burdens as a share of state incomes decreased on average. This trend was largely driven by the growth of income in all states.
- In 2011, the residents of New York, New Jersey, and Connecticut had the highest state-local tax burdens as a share of income in the nation. In these states, residents have forgone over 11.9 percent of income due to state and local taxes.
- Residents of Wyoming paid the lowest percentage of income in 2011 at just 6.9 percent. They replaced Alaska, which had previously been the least-taxed for multiple decades, as the lowest-burdened state in the nation. After Wyoming and Alaska, the next lowest-taxed states were South Dakota, Texas, and Louisiana.
- State-local tax burdens are very close to one another and slight changes in taxes or income can translate to seemingly dramatic shifts in rank. For example, the twenty mid-ranked states, ranging from Oregon (16th) to Georgia (35th), only differ in burden by just over one percentage point.
- On average, taxpayers pay more to their own state and local governments (73 percent of total burden). Taxes paid within states of residence decreased on average in 2011, while taxes paid to other states increased, leading to a slight decrease in total burden. Some states deviated from these national trends, however.
The report examines burden trends over time and takes into account what taxpayers pay to other states in addition to their own, offering a more accurate picture of the true tax burden borne by residents.