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Taxes have never felt more like a burden than tax season, which continues for another month in 2026.
And if you live in Oregon, you may be feeling that burden more than others.
According to a report by personal finance site FinanceBuzz, Oregon has the highest effective tax rate of all states. The report uses median income and state and federal tax rates to measure the combined average tax rate for all 50 states.
According to FinanceBuzz, Florida has the lowest overall tax rate, followed by Nevada. These two states have no income tax.
This report shows how tax rates and income interact. States with the highest effective tax rates tend to have higher tax rates and larger median incomes. States with the lowest tax rates generally have no income tax and have lower incomes.
The “effective” tax rate is the percentage of your annual income you pay in taxes, or your total taxes divided by your income.
Oregon and Massachusetts have the highest overall tax rates.
The median income for Oregonians is relatively high: $65,249 for individual taxpayers. Considering that income and relatively high state taxes, the typical Oregonian faces a total tax burden of $15,925, or 24.4% of their income, the report found.
The February report examines each state’s tax rates in 2025 and estimates how much tax a typical individual or couple will pay on their 2026 return.
For clarity, we will primarily focus on personal tax rates.
Massachusetts has the second-highest individual tax burden, totaling $18,538, or 23.5% of the state’s median personal income of $78,811.
“Massachusetts has one of the highest median incomes of any state in the country, which makes it one of the highest taxes,” said Josh Cobert, a data scientist and researcher at FinanceBuzz.
“Oregon, on the other hand, is at the top only because its state taxes are significantly higher than others,” he says.
The effective state tax rate in Oregon is 7.9% for individual filers with median income, according to the report. This is nearly 3 percentage points higher than Hawaii’s next highest effective tax rate of 5.1%.
Florida and Nevada have the lowest tax rates.
Florida has the lowest personal tax rate. With an average income of $54,375 and no state taxes, the typical Floridian would pay $8,557 in taxes, or 15.7% of their income.
Nevada has the second lowest tax burden. The state also has no income tax, but the median income is slightly higher than Florida at $54,796.
Oddly enough, for married couples, the lowest overall tax rate is not in Florida or Nevada, but in Tennessee. The average income for married couples in the state is $105,402. With no state income tax, the average combined tax burden for married couples is 15.7%.
President Donald Trump has called for tax cuts. In response, a “tax race” has erupted among states, particularly Republican-led states, according to the nonpartisan Tax Foundation.
Eight states lowered their income tax rates in 2026, according to a report from the Tax Foundation. Ohio has adopted a flat tax, joining 14 other flat tax states, which is also a trend.
“A lot of states are trying to flatten taxes to simplify things,” Koebert said. “This will make it easier for everyone to understand that they are responsible for paying state taxes.”
FinanceBuzz analysis uses U.S. Census median income data to determine state-level tax rates based on 2025 state and federal tax laws.
These states have the highest overall tax rates
The 10 states with the highest effective tax rates for individuals are:
- Oregon: With a median income of $65,249 and an effective state tax rate of 7.9%, Oregon’s total effective tax rate is 24.4%.
- Massachusetts: Median income is $78,811. The state’s effective tax rate is 4.7%. The total effective tax rate is 23.5%.
- Maryland: Median income is $74,296. The effective state tax rate is 4.3%. The total effective tax rate is 22.4%.
- New York: Median income is $70,122. The state tax rate is 4.6%. The total tax rate is 22.1%.
- New Jersey: Median income is $73,606. The state tax rate is 3.4%. The total tax rate is 21.5%.
- Minnesota: Median income is $66,826. The state tax rate is 4.6%. The total tax rate is 21.4%.
- Virginia: Median income is $67,034. The state tax rate is 4.5%. The total tax rate is 21.4%.
- Illinois: Median income is $65,318. The state tax rate is 4.7%. The total tax rate is 21.3%.
- Hawaii: Median income is $60,531. The state tax rate is 5.1%. The total tax rate is 21.2%.
- Colorado: Median income is $71,700. The state tax rate is 3.4%. The total tax rate is 21.16%.
. . . And these states have the lowest tax rates
And the 10 states with the lowest effective tax rates for individuals are:
- Florida: Median income is $54,375. There is no state income tax. Total tax rate 15.7%
- Nevada: Median income is $54,796. There are no state taxes. Total tax rate 15.77%
- Tennessee: Median income is $55,245. There are no state taxes. Total tax rate 15.8%
- South Dakota: Median income is $55,597. There are no state taxes. The total tax rate is 15.82%.
- Wyoming: Median income is $56,994. There are no state taxes. The total tax rate is 15.9%.
- Texas: Median income is $58,229. There are no state taxes. The total tax rate is 16%.
- North Dakota: Median income is $60,086. There are no state taxes. The total tax rate is 16.1%.
- Alaska: Median income is $66,828. There are no state taxes. The total tax rate is 16.9%.
- New Hampshire: Median income is $69,187. There are no state taxes. The total tax rate is 17.3%.
- Louisiana: Median income is $52,496. The state tax rate is 2.3%. The total tax rate is 17.9%.
Contributor: Medora Lee.
