ST PAUL, Minn. — Critics have called Minnesota the "Land of 10,000 Taxes," and a new survey by personal finance website WalletHub suggests that assertion may have some merit.
Tax Day 2020 falls on July 15 this year, about three months later than usual due to the COVID-19 pandemic. The delay gives Americans a bit of extra time to get their financial houses in order, but even with stimulus checks and incentives, taxes will still take a major bite out of many incomes.
Using a ratio known as the "Tax Burden," WalletHub has ranked states by the percentage of taxes residents pay from their overall incomes. To do so, researchers measured the proportion of total personal income that residents pay toward state and local taxes. The survey team then compared the 50 states across three types of state tax burdens: Property taxes, individual income taxes and sales and excise taxes — as a share of total personal income in the state.
The result? WalletHub says Minnesota residents carry the fifth highest tax burden in the U.S. The only states higher are New York, Hawaii, Vermont and Maine (ranked in order 1 to 4).
Tax Burden in Minnesota (1=Highest, 25=Avg.):
• 5th – Overall Tax Burden (10.19%)
• 23rd – Property Tax Burden (2.94%)
• 4th – Individual Income Tax Burden (3.61%)
• 20th – Total Sales & Excise Tax Burden (3.64%)
Neighboring states Iowa and Wisconsin are ranked 10th and 15th, respectively.
For more on the survey and how other states stack up, check out the WalletHub website.