(WKRN/NEXSTAR) – It’s tax filing season and depending on where you live in the U.S., you could be forking over a very different-sized chunk of your income.
An analysis by MoneyGeek ranked every state by how “tax-friendly” it is. The analysts didn’t just look at income tax – they also factored in property taxes, plus state and local sales taxes.
To determine where people pay the highest tax burden, MoneyGeek looked at a hypothetical average family: a married couple with one kid, earning the median national income of $82,852, owning a $349,400 home. The study breaks down how much this fictional family would pay in taxes in every state.
Tennessee is the 5th most “tax-friendly” state, according to the study.
Here’s a look at all the states with the lowest tax burden:
- Wyoming (estimated taxes: 4% of income or $3,279)
- Nevada (estimated taxes: 4.7% of income or $3,879)
- Alaska (estimated taxes: 5.4% of income or $4,507)
- Florida (estimated taxes: 5.6% of income or $4,632)
- Tennessee (estimated taxes: 6.5% of income or $5,377)
- Washington (estimated taxes: 6.5% of income or $5,414)
- North Dakota (estimated taxes: 6.7% of income or $5,556)
- Arizona (estimated taxes: 6.8% of income or $5,665)
- South Dakota (estimated taxes: 7.2% of income or $5,938)
- Delaware (estimated taxes: 7.3% of income or $6,074)
Four of the five most “tax-friendly” states saw population growth at or above the national average, including Tennessee.
Based on its analysis, MoneyGeek also gave every state a letter grade on its “tax friendliness.” The states with A grades have the lowest tax burden on an “average” family, while the states with D or E grades have the highest tax burden. Tennessee received an A.
See the full state-by-state breakdown and the tax burden in each state here.