NC Taxes: Here’s How Tax Burden Compares To Other States In US

NORTH CAROLINA — It’s tax season, and while every American is subject to the same federal tax code, state and local tax codes often vary, meaning residents in some states, including North Carolina, end up paying significantly more taxes than others.

A recent analysis by 24/7 Wall St. looked at the financial burden of taxes on residents in all 50 states. The state with residents paying the most taxes ranked 1st, while the state with residents paying the least ranked 50th.

Overall, North Carolina ranked No. 32 out of 50 states.

To determine North Carolina’s overall ranking, 24/7 Wall St. took into account the average income per capita — or per person — and the percentage of taxes they pay in comparison to their income. The analysis also considered the average income, property and sales tax paid per person. The weight of each measure in determining the state’s overall score was not disclosed.

Here are the averages used from North Carolina:

• Taxes paid as percent. of income: 9 percent
• Income per person: $44,180 (13th lowest)
• Income tax collections per person: $1,177 (19th highest)
• Property tax collections per person: $974 (10th lowest)
• General sales tax collections per person: $1,026 (19th lowest)

Data on state and local tax collections came from the U.S. Census Bureau’s 2017 Census of Governments. Data on personal income and population was collected from the Bureau of Economic Analysis.

If you’re not a fan of taxes, 24/7 Wall St. says these are the states where residents pay the least taxes:

1. Alaska
2. Tennessee
3. Florida
4. Oklahoma
5. Arizona
6. Alabama
7. Wyoming
8. Missouri
9. South Carolina
10. New Hampshire

On the other hand, residents of New York, North Dakota and Hawaii pay the most taxes, respectively.