In this article, we will look at the top 5 states by tax revenue to GDP ratio in the US. You can read our detailed discussion and a more comprehensive list by visiting the Top 20 States by Tax Revenue to GDP Ratio in the US.
5. West Virginia
Total Tax Revenue (2023): $7.64 Billion
GDP (2023): $99.51 Billion
Tax-to-GDP Ratio (2023): 7.67
With a tax-to-GDP ratio of 7.67, West Virginia ranks fifth among the states by tax revenue to GDP ratio in the US. West Virginia has a graduated state individual income tax, with rates ranging from 2.36% to 6.50%, and has a 6.5% corporate income tax rate. West Virginia has a state sales tax of 6% and a local state sales tax of 0.57%.
4. North Dakota
Total Tax Revenue (2023): $6.05 Billion
GDP (2023): $74.11 Billion
Tax-to-GDP Ratio (2023): 8.16
North Dakota has a sales tax of 5% and charges graduated individual and corporate income taxes, ranging from 1.95% to 2.50% and 1.41% to 4.31%, respectively. The state of North Dakota imposes a 0.97% tax on property.
3. Hawaii
Total Tax Revenue (2023): $10.18 Billion
GDP (2023): $108 Billion
Tax-to-GDP Ratio (2023): 9.43
Hawaii ranks third among the states in terms of tax revenue to GDP ratio. The state government of Hawaii collected total taxes of around $10.18 billion in 2023.
2. Vermont
Total Tax Revenue (2023): $4.49 Billion
GDP (2023): $43.13 Billion
Tax-to-GDP Ratio (2023): 10.43
Vermont collected nearly $4.49 billion in total taxes in 2023. Vermont has a graduated personal income tax, with rates ranging from 3.35% to 8.75%. The state also imposes a graduated corporate income tax from 6% to 8.5%. Vermont has the second highest tax-to-GDP ratio of 10.43 among the US states.
1. New Mexico
Total Tax Revenue (2023): $14.27 Billion
GDP (2023): $130.2 Billion
Tax-to-GDP Ratio (2023): 10.96
New Mexico has a sales tax of 4.88% and one of the highest average local sales tax of 2.74%. The state imposes graduated individual and corporate income taxes, ranging from 1.70% to 5.90% and 4.80% to 5.90%, respectively. The state government of New Mexico has a 0.67% tax on property. With a total tax collection of over $14 billion and a GDP of $130.2 billion, New Mexico ranks first among the top 20 states by tax revenue to GDP ratio in the US.
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