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16 States People Are Avoiding Due to High Taxes

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In a world where every penny counts, it’s no surprise that people pay more attention to how much they’re dishing out in taxes.

Some states have gained a bit of a reputation for having high taxes, and it’s got a lot of people rethinking where they want to hang their hats.

We’ve rounded up a list of 16 states that people are steering clear of because their taxes are too high.

Whether dreaming of a new place to call home or just curious, you will find everything you need to know right here.

1. California

Hollywood Signs on LA MSN
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California, often known for its sunny beaches and Hollywood stars, also carries a reputation for high taxes. Living here might mean paying more from your paycheck for state income tax compared to many other places.

Plus, buying things can cost a bit extra because of sales tax. Despite these costs, people are drawn to its beautiful landscapes and opportunities in tech and entertainment.

But, when it comes to saving money, those high taxes make some think twice about calling California their home. It’s a balance between enjoying the perks and managing the expenses.

2. New York

New York City
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Next, we have New York, a state famous for its bustling cities and iconic landmarks, which also has some of the highest taxes in the country.

Living here means you might pay more on everything from your income to your morning coffee due to state and city taxes.

Despite the high cost of living, people flock here for the vibrant culture, endless entertainment, and job opportunities in places like New York City.

However, those high taxes are a big reason why some look elsewhere for a cheaper place to live. It’s all about weighing the city’s buzz against the cost.

3. New Jersey

Camden, New Jersey
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New Jersey is another state that people are rethinking moving to because of its high taxes.

The Garden State has some of the highest property taxes in the country, with an average tax bill of over $8,400 per household.

This adds up quickly and can make owning a home here quite expensive. However, New Jersey also offers beautiful beaches and easy access to major cities like New York and Philadelphia.

So, if you can manage the cost, living in New Jersey can be an excellent option for those looking for a mix of suburban and city life.

4. Illinois

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Next up we have Illinois, home to the famous city of Chicago. With a flat income tax and high property taxes, living in this state can be harsh on the wallet.

Many people choose to live here for the cultural diversity and Midwest charm, but it’s essential to budget carefully when considering a move here.

One perk of living in Illinois is its central location, making it easy to travel and explore nearby states like Wisconsin and Indiana.

However, with high taxes comes a higher cost of living, so if you choose to call Illinois home, be prepared to budget accordingly.

5. Connecticut

Hartford Connecticut MSN
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One of Connecticut’s best aspects is its proximity to major cities like New York and Boston, making it a popular choice for commuters. But with that convenience comes high property taxes and a higher cost of living.

This state has beautiful suburban neighborhoods and charming coastal towns, but be prepared to pay for them.

If you’re considering a move to Connecticut, budget carefully and weigh the cost versus the convenience of its location.

But with its charming New England vibe and easy access to major cities, it may be worth the extra expense for some.

6. Maryland

Downtown Baltimore Maryland at night MSN
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The number 6 spot goes to Maryland, a state known for its diverse landscapes. With a high median household income, it’s no surprise that Maryland has some of the highest property taxes in the nation.

But with great schools, beautiful suburbs, and easy access to the mountains and the beach, many people are willing to pay the price for this quality of life.

However, to save money on taxes and housing, you may consider living further away from major cities like Baltimore and Washington, D.C.

Overall, Maryland offers a mix of urban and suburban living. The cost of living is higher, but there are also higher job opportunities and quality of life. So, weigh your options carefully before making the move.

7. Minnesota

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Minnesota, often called the Land of 10,000 Lakes, is not just known for its beautiful waterways and outdoor adventures but also for its high taxes.

Living in Minnesota means you might see a bigger chunk of your paycheck going to state taxes. This includes higher income and sales taxes than in many other places.

Despite this, Minnesota has much to offer with its friendly communities, great schools, and robust job market.

However, the higher taxes can make some people think twice about making it their permanent home. It’s all about balancing the benefits with the costs.

8. Rhode Island

Providence, Rhode Island
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The next state on our list is the smallest in the United States: Rhode Island. Living in this tiny state can come with big costs, including high property and income taxes.

Like other states on this list, Rhode Island offers a lot in terms of quality of life, with its beautiful coastal towns and proximity to major cities like Boston.

But if you’re looking to save on taxes and housing costs, it may be worth considering living in other nearby states. Besides that, Rhode Island has a lot to offer with its charming small towns and delicious seafood cuisine.

9. Vermont

Burlington, Vermont Skyline
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The more you earn, the higher your taxes will be in Vermont. This small and picturesque state may have a lower cost of living than its neighboring states, but it also has high-income tax rates, especially for high earners.

However, if you value outdoor activities and beautiful landscapes, Vermont offers plenty of opportunities for hiking, skiing, and other outdoor adventures.

It also has a strong sense of community and a laid-back lifestyle that may be worth the higher taxes for some individuals.

10. Hawaii

Waikiki Beach, Hawaii
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You know this one was about to make the list—Hawaii, the tropical paradise with a hefty price tag. The cost of living in Hawaii is significantly higher than in the rest of the United States, including high property taxes.

This is because most goods and services are shipped to the islands, increasing prices. Additionally, Hawaii has one of the country’s highest state income tax rates.

But if you can afford it, living in Hawaii offers a unique experience with its beautiful beaches, warm weather, and rich cultural heritage. Just be prepared for higher costs in exchange for the island life.

11. Massachusetts

Boston Waterfront in Massachusetts MSN
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Next up, we have the home of the prestigious Ivy League university, Harvard – Massachusetts. This state has a progressive income tax system with rates ranging from 5.05% to 9.15%, making it one of the highest in the country.

The main reason behind this high tax rate is to support the state’s highly renowned education system and other public services.

You might find it harder to save money in Massachusetts, but you’ll also have access to excellent healthcare, public transportation, and cultural attractions like Boston’s historical sites.

12. Oregon

Cannon Beach, Oregon
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Oregon is known for its lush forests, beautiful coastline, and quirky cities like Portland.

But living in this Pacific Northwest state comes with a cost – high taxes. There is no sales tax, but Oregon residents pay for many public services, such as healthcare and education, with one of the highest income tax rates in the country.

On the bright side, there are plenty of outdoor activities to enjoy, such as hiking, skiing, and camping.

13. Michigan

Holland Michigan MSN
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Michigan, known for its Great Lakes and bustling automotive industry, also has a reputation for higher taxes. Living here, you might notice more of your money goes towards state income and property taxes.

This can make it a bit harder to stretch your dollar. However, Michigan is not just about the costs. It offers beautiful natural landscapes, a rich history in music and cars, and a sense of community in its cities and towns.

But, when budgeting, those taxes are something people consider before calling Michigan home.

14. Wisconsin

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Wisconsin might be the state for you if you like cheese, football, and colder temperatures.

But remember that taxes here are on the higher side – the main reason is the state’s robust public education system and other services provided to its residents.

It could be an issue if you have limited income or prefer to save more money for other expenses.

However, Wisconsin offers a strong sense of community and plenty of outdoor activities like fishing, camping, and skiing. So, while you may have to budget carefully, there are still many reasons people choose to call Wisconsin home.

15. Pennsylvania

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Pennsylvania, steeped in American history and brimming with cultural hotspots, also has its own set of tax burdens. Living here means dealing with state income taxes that can eat away at your earnings.

Plus, property taxes here can be pretty steep, depending on where you choose to live. Despite this, Pennsylvania has a lot going for it, from the historic streets of Philadelphia to the scenic views of the Pocono Mountains.

But those taxes are definitely something to consider if you’re considering making Pennsylvania your home. It’s a balance between enjoying the rich heritage and managing living costs.

16. Ohio

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Lastly, we have Ohio, known for its scenic landscapes and a sense of community in its cities and towns.

But when it comes to taxes, there are some things you need to know. Ohio has a state income tax, but it is relatively low compared to other states. It is a 0%, 2.75%, 3.68%, and 3.75%.

Property taxes here can also vary depending on which country you live in, so it’s important to research your desired location before making a move. The state property tax is 1.41%, which is much higher than the average in the states.

Sales taxes can put a damper on things as well. The average with state and county in Ohio would be combined 7.24%, but it varies depending on where in Ohio you live.

Despite these costs, Ohio offers affordable living in charming communities and a strong job market in industries like healthcare, technology, and manufacturing. So, while you may have to budget wisely, Ohio can still be a great place to call home.

Taxes Can Be Big When Moving

Tax preparation
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Taxes can be a big consideration when deciding where to live, but they are not the only factor. Each state offers unique benefits and drawbacks. It’s important to consider your priorities carefully and research the cost of living before moving. So make sure to do your homework, and you’ll be on your way to finding the perfect place to call home.

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