How Does Minnesota’s Tax Burden Stack Up Against Other States?

As a Minnesota resident, it anecdotally feels like we are taxed more than surrounding states. A recent WalletHub study broke down the states with the highest tax burdens and Minnesota was fairly high on the list.

WalletHub used property tax rates, individual income tax rates and sales/excise taxes to determine which of the 50 states is taking the most of our money.

Topping the list with the highest tax burden is Hawaii, which ranked first in total sales/excise tax burden (7.17%) and fifth-highest for individual income tax (4.18%).

New York state finished second overall and first in individual income tax burden (5.78%). They also finished fourth-highest in the property tax burden category at 4.28%.

Rounding out the top five were Vermont (1st in property tax burden), California (2nd in individual income tax burden) and Maine.

“It’s easy to be dismayed at tax time when you see just how much of your income you lose. Living in a state with a low tax burden can alleviate some of that stress," WalletHub Analyst Chip Lupo said. "Some states charge no income tax or no sales tax, although all states have some form of property taxes and excise taxes.”

Minnesota finished this study as the 11th-most highly taxed state, finishing seventh in individual income tax burden (3.79%), 24th in property tax burden (2.74%) and 33rd in the total sales/excise tax burden category (3.19%). In total, Minnesota's tax burden is 9.72%.

The least-taxed states in the country were Alaska (4.93% total tax burden), Wyoming (5.79%), New Hampshire (5.94%), Tennessee (6.38%) and South Dakota (6.46%).