MA's Tax Burden May Not Be As Bad As You Think

A new study found that Massachusetts has the 21st ranked tax burden in the country. The analysis comes from personal finance website WalletHub.

Massachusetts does live up to its reputation in terms of income tax burden, coming in at 3.45%, which is fifth in the nation.

However, its sales and excise taxes are among the lowest in the country at 2.04%, which is 45th. The property tax burden is 3.33%, which is 11th.

The ranking is up somewhat from last year, when Massachusetts came in at 29th in the study.

The Bay State did well when compared to other New England states. The only state with a lower tax burden was New Hampshire, which ranked 49th.

WalletHub explained why the analysis focuses on tax burdens instead of tax rates: "Unlike tax rates, which can differ significantly depending on an individual’s situation, tax burden looks at the share of total personal income that residents pay in state and local taxes."

Overall, Hawaii has the highest tax burden. On the other end of the spectrum, Alaska has the lowest.

“It’s easy to be dismayed at tax time when you see just how much of your income you lose," WalletHub Analyst Chip Lupo said. "Living in a state with a low tax burden can alleviate some of that stress. Some states charge no income tax or no sales tax, although all states have some form of property taxes and excise taxes.”

Here are the top 10 states with the highest tax burdens:

1. Hawaii
2. New York
3. Vermont
4. New Mexico
5. Maine
6. Illinois
7. Maryland
8. New Jersey
9. Oregon
10. Rhode Island

Check out the full study by clicking here.