Combined local-state tax rate in Texas stood at 8% in 2019, 4th lowest in U.S.

The effective state and local tax rate for Texas residents in 2019 was 8 percent, the fourth lowest percentage among the 50 states, according to a new ranking published by the Tax Foundation.

Across the United States, the average state-local tax burden came in at 10.3 percent of Americans’ combined income, the study said. Generally, state-local tax rates rose in 2019 over the previous year as tax collections outpaced overall income growth, the Tax Foundation’s analysis found.

The foundation’s researchers also point out that about a fifth of states’ tax revenues come from nonresidents, such as tourists and out-of-state homeowners. Based on the latest economic data available, the study accounted for this and looked primarily at state and local levies paid by each state’s residents.

In the resulting data table quantifying state and local tax burdens, the states’ numbers tend to be clustered tightly in the center, with percentages widening at the top and bottom of the table, according to the Tax Foundation.

Levies examined in the study include general sales taxes, property taxes, excise taxes on products such as alcoholic beverages and cigarettes, license taxes on vehicles, individual income taxes, corporate income taxes, and estate, inheritance and gift taxes.

State and Local Tax Burdens, From Highest to Lowest

State State-Local Effective Tax Rate Rank
New York 14.1% 1
Connecticut 12.8% 2
Hawaii 12.7% 3
Vermont 12.3% 4
Minnesota 12.1% 5
Maryland 11.8% 6
New Jersey 11.7% 7
California 11.5% 8
Rhode Island 11.4% 9
Illinois 11.1% 10
Oregon 11.1% 11
Maine 11.0% 12
Iowa 10.8% 13
Wisconsin 10.7% 14
Massachusetts 10.5% 15
Pennsylvania 10.4% 16
Arkansas 10.4% 17
Delaware 10.3% 18
Nebraska 10.3% 19
Ohio 10.3% 20
Montana 10.1% 21
Kansas 10.1% 22
Michigan 10.0% 23
Virginia 10.0% 24
Kentucky 9.9% 25
West Virginia 9.9% 26
Washington 9.8% 27
New Hampshire 9.7% 28
Nevada 9.7% 29
Utah 9.6% 30
Idaho 9.6% 31
North Carolina 9.5% 32
Mississippi 9.5% 33
Colorado 9.4% 34
Missouri 9.2% 35
Louisiana 9.2% 36
South Dakota 9.1% 37
Alabama 9.0% 38
Indiana 8.9% 39
South Carolina 8.9% 40
Georgia 8.9% 41
North Dakota 8.9% 42
Florida 8.8% 43
New Mexico 8.8% 44
Arizona 8.7% 45
Oklahoma 8.2% 46
Texas 8.0% 47
Tennessee 7.0% 48
Wyoming 7.0% 49
Alaska 5.8% 50

Source: Tax Foundation

Interested in more news from Texas? We've got you covered! See More Texas News
Previous Article
Next Article
Join the Conversation - Download the Speakeasy App.

Trending on The Hayride