States with the highest, lowest state and local tax collections
State and local tax collections have become a big issue for some taxpayers ever since deductions were capped under the Tax Cuts and Jobs Act, which was signed into law in 2017.
A judge dismissed a challenge lodged by a handful of blue states – including New York and New Jersey – this week, which aimed to have the $10,000 SALT cap deemed unconstitutional.
The cap has led to an outmigration of residents from high-tax states like New York and New Jersey, to states where the liabilities are much less onerous, like Florida. Experts have argued that the court ruling might push even more taxpayers to leave while discouraging others from moving in.
Independent, nonprofit taxpayer research institute Florida TaxWatch recently analyzed Commerce Department data to determine which states have the highest per capita state tax collections.
The average per capita state and local tax collection in the U.S., as of fiscal 2016, was $4,956 – though some states collect much more or much less.
Here’s a look at the states with the highest per capita state and local tax collections as of fiscal 2016:
- New York: $9,041
- Connecticut: $7,230
- New Jersey: $6,789
- North Dakota: $6,642
- Hawaii: $6,482
- Massachusetts: $6,481
- Minnesota: $6,115
- California: $6,110
- Maryland: $6,056
- Vermont: $5,894
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According to the report, these are the states with the lowest state tax and local collections, per capita:
46. Florida: $3,517
47. Oklahoma: $3,460
48. South Carolina: $3,459
49. Tennessee: $3,338
50. Alabama: $3,207