Texas N' Taxes

As tax season approaches, are we really better off paying taxes in Texas?

Texas ranks as one of the best states to be a taxpayer

The April 15 deadline to file taxes is just 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 to be a taxpayer in the U.S., paying an average of $5193 per person in taxes annually.

Examining eight different types of taxation, including real estate, income, alcohol and sales taxes, WalletHub.com ranked Texas as paying the 7th lowest amount in taxes nationally. In addition to our affordable cost of living, Texas was No. 1 for lowest state income tax, local income tax, auto tax and food tax.

So what is the best state to be a taxpayer? That honor goes Wyoming, whose residents pay an average of $2365 in taxes annually. Alaska and Nevada round out the top three.

Texans will no doubt take a little pride in knowing that the two states that rank as the worst places to be a taxpayer are California and New York. Californians hand over an average of $9509 per person annually. New Yorkers pay even more, shelling out $9718 every year.

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