In this article, we will take a look at the 5 states with the highest tax revenue per capita. If you want to see more states in this selection, go to the 15 States with the Highest Tax Revenue Per Capita.
5. Hawaii
Total Tax Collection in 2021: $8.05 billion
Total Population: 1,441,598
Tax Revenue Per Capita: $5,582
Hawaii has the highest income tax rate of 11% on an annual taxable income of over $400,000 for couples filing jointly and over $200,000 for individual filers and married couples filing separately. Hawaii levies a corporate income tax ranging from 4.4% to 8.25%. The state also has a general excise tax of 4%, which is applied to most goods and services. Additionally, there is a transient accommodations tax of 13.42% on hotel rooms and vacation rentals. Property taxes are also assessed on real estate in Hawaii, with rates varying by county. The median property tax rate stands at $273 per $100,000 of accessed home value.
4. Minnesota
Total Tax Collection in 2021: $32.03 billion
Total Population: 5,707,769
Tax Revenue Per Capita: $5,612
Minnesota’s income tax rate ranges from 5.35% to the highest rate of 9.85% on an annual taxable income of $171,220 for individual filers and $284,410 for joint filers. Interestingly, social security benefits are taxed in Minnesota. However, income from a military retirement plan is exempted from all state taxes. The state charges a sales tax of 6.875% that can be increased by a limit of 2% by counties. Minnesota exempts groceries, clothing, motor vehicles, and prescription drugs from the sales tax. The state charges a motor vehicle fuel tax of 30.6 cents per gallon.
3. Connecticut
Total Tax Collection in 2021: $22.07 billion
Total Population: 3,605,719
Tax Revenue Per Capita: $6,120
Connecticut has the third highest property tax in the US at $1,957 per $100,000 of assessed home value. Meanwhile, the income tax rate stands at 3% for individual filers having a taxable income of $10,000 and joint filers having a taxable income of less than $20,000. The maximum income tax rate is 6.99% of the taxable income for individual filers earning $500,000 and married joint filers earning more than $1 million. The state charges a flat sales tax of 6.35%, with counties not allowed to add anything above that. Groceries and prescription drugs are exempted from sales tax. The Constitution State also applies a flat 12% estate and gift taxes.
2. California
Total Tax Collection in 2021: $248.19 billion
Total Population: 39,239,209
Tax Revenue Per Capita: $6,325
California has a progressive income tax structure in place. The lowest income tax rate stands at 1% on a taxable income of $10,099 for individual filers and $20,198 for joint married filers. Meanwhile, the highest income tax rate is levied at 13% on a taxable income of $1 million for an individual filer and $1.35 million for joint married filers. The state also imposes a 7.25% sales tax that can be increased by as much as 2.5%. However, groceries and prescription drugs are exempted from sales tax. The median property tax in the Golden State stands at $707 per $100,000 of assessed home value.
1. Vermont
Total Tax Collection in 2021: $4.10 billion
Total Population: 645,532
Tax Revenue Per Capita: $6,356
As of 2021, the state of Vermont generates the highest tax revenue per capita. The Green Mountain State has a sales tax of 6% that can be increased by as much as 1% in counties and municipalities. The median property tax stands at $1,730 per $100,000 of assessed home value. The state charges a sin tax of $3.08 on every packet of cigarettes. Furthermore, Vermont levies a tax of 33 cents per gallon on gasoline and 32 cents per gallon on diesel. The minimum income tax rate in the state is 3.35% on taxable income of up to $42,150 for individuals and $70,450 for joint-married filers.
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