Owning a home has its own share of expenses, one of them being property taxes, which can increase or decrease the tax burden for a homeowner depending on the state they're living in. Take New Hampshire for instance, where the burden of property tax is 5.6 percent of personal income, according to a study by WalletHub on the tax burdens across the U.S.
To determine the residents with the biggest tax burdens, WalletHub compared the 50 states across three tax types of state tax burdens—property taxes, individual income taxes and sales and excise taxes—as a share of total personal income in the state.
The study found that while households in New York bore the brunt of the maximum tax burden at 13 percent of personal income, Alaska residents enjoyed the least tax-related burdens with just 4.94 percent of their personal incomes going towards taxes. Hawaii, Maine, Vermont, Minnesota, Connecticut, Rhode Island, Illinois, New Jersey, and California were the other states that felt the maximum burden of taxes.
When it came to property tax, New Hampshire residents with 5.6 percent of personal income going towards property tax bore the most burden while homeowners in Alabama were least burdened by property taxes with only 1.4 percent of their personal income going towards this state tax.
Joining New Hampshire were Vermont (5.2 percent); New Jersey (5.1 percent); Maine (4.8 percent); and Rhode Island (4.7 percent). Interestingly, except New Hampshire all the other states in the top five states with maximum property tax burden featured among the top 10 states with the maximum tax burden. New Hampshire came in at No.46 in the overall rankings.
On the other hand, Oklahoma (1.5 percent); Arkansas (1.8 percent); Delaware (1.82 percent); New Mexico (2 percent); and Kentucky (2 percent), joined Alabama as the states where homeowners were least burdened with property taxes.