The average American family pays nearly $7,000 in state and local taxes in a given year, but the actual amounts vary wildly. A Californian who lives on the western side of Lake Tahoe pays almost three times more in state taxes than their neighbor on the Nevada side of the lake. Someone living in Portland, Ore., pays more than twice as much as a neighbor living across the Columbia River in Vancouver, Wash.
That’s according to a new study by WalletHub, a publication of Evolution Finance, which found residents in blue states pay much more than residents of red states. The company used a typical American family making a median income and living in a median home to weigh average relative tax bills.
Wyoming residents pay the lowest state and local taxes, an average of $2,365 per year, the study found. Residents of Alaska and Nevada pay less than half the average tax rate.