On a scale of lowest to highest, the state and local effective tax rate for Indiana ranks 35th in the nation, according to a new WalletHub.com study of tax burdens imposed by the 50 states and the District of Columbia.
The state’s total tax burden – combining property levies on real estate and vehicles, the income tax, and the sales and excise taxes – stood at 11.76 percent, the analysis found. The annual state and local levies on a U.S. median household would be $6,828, which is 9.29 percent above the U.S. average.
The study compared tax rates applied statewide and locally against state and U.S. median-income households.
Among all of the states, the average effective state and local tax rate was 10.76 percent, according to the WalletHub study.
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Tax Burdens by State
| Overall Rank (1=Lowest) | State | Effective Total State & Local Tax Rates on Median U.S. Household | Annual State & Local Taxes on Median U.S. Household | % Difference Between State & U.S. Avg. | Annual State & Local Taxes on Median State Household | Adjusted Overall Rank (based on Cost of Living Index) |
| 1 | Alaska | 5.70% | $3,309 | -47.03% | $4,439 | 3 |
| 2 | Delaware | 6.14% | $3,567 | -42.90% | $4,047 | 1 |
| 3 | Montana | 7.07% | $4,106 | -34.28% | $3,968 | 2 |
| 4 | Wyoming | 8.05% | $4,673 | -25.20% | $4,902 | 6 |
| 5 | Nevada | 8.20% | $4,762 | -23.77% | $4,797 | 10 |
| 6 | Utah | 8.39% | $4,874 | -21.99% | $5,638 | 8 |
| 7 | Florida | 8.44% | $4,902 | -21.54% | $4,396 | 9 |
| 8 | Idaho | 8.56% | $4,972 | -20.41% | $4,431 | 4 |
| 9 | Colorado | 8.65% | $5,026 | -19.55% | $6,009 | 13 |
| 10 | Tennessee | 8.73% | $5,071 | -18.83% | $4,183 | 5 |
| 11 | District of Columbia | 8.93% | $5,184 | -17.02% | $8,487 | 41 |
| 12 | California | 8.94% | $5,190 | -16.92% | $7,703 | 36 |
| 13 | South Carolina | 9.00% | $5,230 | -16.29% | $4,415 | 11 |
| 14 | Oregon | 9.10% | $5,287 | -15.38% | $5,948 | 17 |
| 15 | Alabama | 9.11% | $5,290 | -15.32% | $4,186 | 7 |
| 16 | West Virginia | 9.66% | $5,613 | -10.16% | $4,167 | 12 |
| 17 | Arizona | 9.69% | $5,627 | -9.93% | $5,350 | 21 |
| 18 | New Hampshire | 9.94% | $5,771 | -7.62% | $7,152 | 33 |
| 19 | North Dakota | 10.03% | $5,825 | -6.76% | $5,850 | 22 |
| 20 | New Mexico | 10.37% | $6,025 | -3.56% | $4,931 | 19 |
| 21 | Georgia | 10.44% | $6,066 | -2.90% | $5,403 | 14 |
| 22 | Louisiana | 10.49% | $6,094 | -2.46% | $4,922 | 16 |
| 23 | Hawaii | 10.60% | $6,157 | -1.45% | $8,826 | 44 |
| 24 | North Carolina | 10.61% | $6,165 | -1.32% | $5,340 | 15 |
| 25 | Virginia | 10.68% | $6,203 | -0.71% | $7,409 | 27 |
| 26 | Massachusetts | 10.81% | $6,277 | 0.47% | $9,175 | 43 |
| 27 | South Dakota | 11.03% | $6,407 | 2.55% | $5,626 | 25 |
| 28 | Vermont | 11.18% | $6,495 | 3.96% | $6,992 | 39 |
| 29 | Arkansas | 11.25% | $6,532 | 4.55% | $4,850 | 18 |
| 30 | Minnesota | 11.30% | $6,561 | 5.02% | $7,185 | 30 |
| 31 | Missouri | 11.30% | $6,562 | 5.03% | $5,653 | 20 |
| 32 | Oklahoma | 11.35% | $6,590 | 5.48% | $5,297 | 24 |
| 33 | Maryland | 11.40% | $6,619 | 5.95% | $9,392 | 46 |
| 34 | Maine | 11.71% | $6,799 | 8.83% | $6,323 | 40 |
| 35 | Indiana | 11.76% | $6,828 | 9.29% | $5,814 | 26 |
| 36 | Mississippi | 11.99% | $6,962 | 11.45% | $5,056 | 23 |
| 37 | Washington | 12.08% | $7,019 | 12.35% | $8,716 | 42 |
| 38 | Kentucky | 12.33% | $7,163 | 14.66% | $5,609 | 29 |
| 39 | New Jersey | 12.40% | $7,203 | 15.30% | $11,119 | 47 |
| 40 | Michigan | 12.43% | $7,220 | 15.57% | $5,951 | 28 |
| 41 | Texas | 12.71% | $7,380 | 18.14% | $6,576 | 34 |
| 42 | Iowa | 12.92% | $7,501 | 20.07% | $6,546 | 32 |
| 43 | Ohio | 13.05% | $7,580 | 21.33% | $6,247 | 31 |
| 44 | Rhode Island | 13.21% | $7,672 | 22.81% | $8,667 | 48 |
| 45 | Wisconsin | 13.32% | $7,734 | 23.79% | $7,199 | 38 |
| 46 | Kansas | 13.35% | $7,752 | 24.09% | $6,813 | 35 |
| 47 | Nebraska | 13.37% | $7,763 | 24.26% | $6,778 | 37 |
| 48 | New York | 13.74% | $7,978 | 27.71% | $10,074 | 51 |
| 49 | Pennsylvania | 13.78% | $8,004 | 28.12% | $7,580 | 45 |
| 50 | Connecticut | 14.41% | $8,370 | 33.98% | $10,987 | 50 |
| 51 | Illinois | 14.90% | $8,653 | 38.51% | $8,585 | 49 |