List of the Top 10 Highest Taxed U.S. States

Top 10 highest taxed states: Taxes are one of those things we all complain about, but they keep the lights on for society, funding schools, roads, healthcare, and public safety. In the United States, not all states collect taxes the same way. Some rely heavily on income tax, others lean more on sales or property taxes. So, do you know which state takes the most money from its residents and businesses? The answer might surprise you because it’s not just about who charges the highest tax rates, but also about population size, economy, and spending patterns. 

Income tax is a tax on a person's earnings. Some states, like California and New York, have a progressive tax system, which means the more you make, the higher your tax rate. Other states, like Florida and Texas, have no income tax at all.

Which State Pays The Highest Tax?

The U.S. state that collects the most taxes from its residents is California, and honestly, it makes sense. California is not just the most populated state with around 40 million people, but it is also home to Silicon Valley, Hollywood, and some of the biggest industries in the country. 

This mix of people,  wealth, and business equals a massive tax base.

According to recent data from the U.S. Census Bureau, California consistently leads in overall state tax revenue, often bringing in over $250 billion annually. That is more than some smaller states’ entire budgets combined!

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Top 10 Highest Taxed U.S. States

Apart from California, some more states that lead in taking taxes, let’s have a look at them:

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Conclusion

So, now, you know which state takes the most taxes, California. But more states like Hawaii, New York, and Texas follow closely, each with its own unique way of pulling in revenue.