Wyoming Listed in the Top 5 States for Having the Lowest Tax Rate

For some, tax season is the favorite time of year, but for others, not so much so. It largely depends on whether you are getting a refund or if you owe. That being said, there is good news if you are a Wyoming resident.

A new study conducted by personal finance website, WalletHub, listed "States with the Highest & Lowest Tax Rates" and Wyoming was 3rd overall for having the lowest tax rate. As a matter of fact, only Alaska and Delaware (respectively), were lower.

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The WalletHub study also stated:

Tax season can be stressful for the millions of Americans who owe money to Uncle Sam. Every year, the average U.S. household pays nearly $11,000 in federal income taxes. And while we’re all faced with that same obligation, there is significant difference when it comes to state and local taxes. Taxpayers in the most tax-expensive states, for instance, pay more than twice as much as those in the cheapest states.

Surprisingly, though, low income taxes don’t always mean low taxes as a whole. For example, while the state of Washington’s citizens don’t pay income tax, they still end up spending over 8% of their annual income on sales and excise taxes. Texas residents also don’t pay income tax, but spend 1.63% of their income on real estate taxes, one of the highest rates in the country.

As this year’s tax-filing deadline, April 15, comes closer WalletHub compared the 50 states and the District of Columbia against national medians to see where taxpayers pay the least and the most. We calculated relative income-tax obligations by applying the effective income-tax rates in each state and locality to the average American’s income.

Here are some of the key metrics and how Wyoming scored:

• Effective Total State & Local Tax Rates on Median U.S. Household - 7.39%
• Annual State & Local Taxes on Median U.S. Household - $5588.00
• Percentage Difference Between State & U.S. - -32.33%
• Annual State & Local Taxes on Median State Household - $5412.00
• Adjusted Overall Rank (based on Cost of Living Index) - 2nd

With the exception of vehicle property tax (were we ranked 42nd), Wyoming was in the top five in just about all categories.

For all of the complaining we do about taxes overall, as Wyoming residents, we do have it a lot better than the majority of the country.