The Best and Worst Tax States for Low-Income Residents

No. 5 worst state: Indiana

Indiana
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Sales and excise tax as a percentage of income: 6.16%

Property tax as a percentage of income: 2.79%

Income tax as a percentage of income: 2.88%

Total tax burden as a percentage of income: 11.82%

Indiana is the fifth-worst state for taxation of residents with a low income. Sales and excise taxes hit these residents particularly hard. Indeed, the Hoosier State’s statewide sales tax rate of 7% is one of the highest in the nation, according to the Sales Tax Institute.

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