The top 1 percent of earners in Arizona are taxed at an effective rate of 5.9 percent, compared to the state’s 9.4 percent tax rate on the middle 20 percent of income earners, according to a new 24/7 Wall St. analysis.

The study, which used data from a 2018 report by the Washington-based Institute on Taxation and Economic Policy (ITEP), did not include federal taxes paid. Arizona ranked 12th on the study’s list of the most tax-friendly states for the rich.

On average, the top 1 percent of earners in the state take in $1.1 million annually, according to 24/7 Wall St.

Nationwide, the top-earning 1 percent of families pay 7.4 percent of what they make toward state and local levies, the ITEP study concluded. The middle 20 percent of U.S. earners, in contrast, paid more – 9.9 percent.

States with no income tax – or a very low income tax – tended to be the most friendly to wealthy individuals, 24/7 Wall St. reported. That’s because those states tend to rely more on more regressive taxes, placing more of a burden on poorer households, the study found.

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Which States Are the Most Tax-Friendly to the Wealthy?

Rank	State	Effective Tax Rate for Top 1% of Income Earners	Effective Tax Rate for Middle 20% of Income Earners	Average Income for Top 1%	State and Local Revenue From Sales Taxes	State and Local Tax Revenue From Income Taxes
1	Nevada	1.9%	7.6%	$1.7 million	39.4%	0%
2	Florida	2.3%	8.1%	$2.3 million	34.1%	0%
3	South Dakota	2.5%	8.9%	$1.5 million	39.6%	0%
4	Alaska	2.5%	4.3%	$1.1 million	8.3%	0%
5	Wyoming	2.6%	7.5%	$2 million	25.2%	0%
6	Tennessee	2.8%	8.5%	$1.3 million	41.5%	1.5%
7	Washington	3%	11%	$1.6 million	46.4%	0%
8	New Hampshire	3.0%	8.1%	$1.5 million	0%	1.4%
9	Texas	3.1%	9.7%	$1.6 million	35.4%	0%
10	North Dakota	4.5%	8.5%	$1.3 million	25.6%	7%
11	Alabama	5%	9%	$955,600	30.7%	23.2%
12	Arizona	5.9%	9.4%	$1.1 million	38.7%	16%
13	Pennsylvania	6%	11.1%	$1.3 million	17.2%	26.2%
14	New Mexico	6%	10.2%	$845,400	37.8%	17.4%
15	Louisiana	6.2%	10%	$1 million	41%	15.7%
16	Oklahoma	6.2%	10.7%	$1.1 million	33.3%	22.1%
17	Missouri	6.2%	9%	$1.2 million	27.3%	28.6%
18	Michigan	6.2%	9.2%	$1.3 million	22.6%	24.2%
19	North Carolina	6.4%	9.4%	$1.1 million	25%	30.3%
20	Colorado	6.5%	8.9%	$1.5 million	26.5%	25.4%
21	Ohio	6.5%	10.7%	$1.1 million	28.2%	25.6%
22	Massachusetts	6.5%	9.3%	$2.5 million	13.8%	32.7%
23	Montana	6.5%	7.1%	$1.1 million	0%	29.7%
24	Delaware	6.5%	5.6%	$1 million	0%	25.8%
25	Utah	6.7%	8.2%	$1.3 million	24.8%	29.6%
26	Kentucky	6.7%	11.1%	$935,400	20.4%	33.3%
27	Mississippi	6.7%	10.8%	$802,200	30.6%	16.7%
28	Indiana	6.8%	11.1%	$1 million	28.4%	25.5%
29	South Carolina	6.8%	8.1%	$992,300	22.1%	22.7%
30	Arkansas	6.9%	10.8%	$1.1 million	37.5%	23.5%
31	Virginia	7%	9.2%	$1.4 million	13.8%	31.9%
32	Georgia	7%	9.8%	$1.2 million	24.1%	27.7%
33	Idaho	7.2%	8.1%	$1 million	26.5%	25.8%
34	Kansas	7.4%	10.6%	$1.3 million	32.1%	17.1%
35	West Virginia	7.4%	8.5%	$702,400	18.4%	25.8%
36	Illinois	7.4%	12.6%	$1.7 million	19.3%	19%
37	Wisconsin	7.7%	10.1%	$1.2 million	19.8%	27.1%
38	Iowa	7.7%	10.7%	$960,000	22.8%	23.9%
39	Rhode Island	7.9%	9.5%	$1.1 million	16.6%	21%
40	Oregon	8.1%	9.1%	$1.1 million	0%	41.7%
41	Connecticut	8.1%	12.2%	$3.2 million	14.5%	29.2%
42	Maine	8.6%	9.6%	$877,200	19.6%	22.4%
43	Nebraska	8.7%	10.8%	$1.1 million	22.4%	23.1%
44	Hawaii	8.9%	11.6%	$984,200	37.2%	22.9%
45	Maryland	9%	10.6%	$1.5 million	12.4%	37.8%
46	New Jersey	9.8%	10.1%	$1.9 million	15.4%	22.2%
47	Minnesota	10.1%	9.7%	$1.5 million	17.1%	31.9%
48	Vermont	10.4%	10.1%	$993,600	10.4%	19.8%
49	New York	11.3%	12.4%	$2.5 million	16.7%	32.7%
50	California	12.4%	8.3%	$2.2 million	21.9%	33.8%

Source: 24/7 Wall St.; Institute on Taxation and Economic Policy