Texas 'n' Taxes

It's good to be a Texan during tax season: Lone Star State ranks low in annual tax bill

It's good to be a Texan during tax season; state ranks low in tax bill

The April 15 deadline to file taxes is just a few weeks away, meaning many Americans are about to hand over a big chunk of change to the federal government. But lucky for Texans, we rank as one of the best states in the nation to be a taxpayer, shelling out an average $5,193 per person in taxes annually.

Examining eight different types of taxation, including real estate, income, alcohol, telecom, auto property and sales taxes, WalletHub.com determined Texans pay the seventh lowest amount annually. So what is the best state to be a taxpayer? That honor goes to Wyoming, whose residents pay an average of $2,365 annually. Alaska and Nevada round out the top three.

Unsurprisingly, the top seven states in which to be a taxpayer are those without state or local income tax.

Texans will no doubt enjoy knowing that California and New York rank as the worst places to be a taxpayer. Californians hand over an average of $9,509 per person annually. New Yorkers pay even more: $9,718 every year.

However, the survey did not compare the number and type of services provided to residents in Texas versus California or New York.

Another interesting trend, and one that will come as no surprise to politicos, traditionally, red states impose lower tax rates than states that tend to vote Democratic. Maybe Rick Perry does have a point with all those ads urging California businesses to move to the Lone Star State.

Texas flag flying with blue sky in background
Texas is one of the best states to be a taxpayer. Photo courtesy of AFlags