High Tax States: Where You Pay More and What It Really Means

When people talk about high tax states, U.S. states with the highest combined income, property, and sales tax burdens. Also known as high-cost-of-living states, they’re often the same places that offer better public services, higher wages, and more infrastructure. But here’s the thing—paying more in taxes doesn’t always mean you’re getting ripped off. Sometimes, it means you’re paying for cleaner streets, better schools, or reliable public transit that actually works.

Take California, a state with the highest state income tax rate in the nation. If you make $100,000 a year, you could be paying over $9,000 just in state income tax. But you’re also likely living near top-rated schools, parks, and healthcare systems that are funded by those taxes. Compare that to Texas, a state with no state income tax at all. You keep more of your paycheck, but you might pay more in property taxes, and your local school district might rely on fundraising just to buy textbooks. It’s not about which state taxes you more—it’s about what you get in return.

And it’s not just income tax. New Jersey, often ranked as the highest in property taxes, makes homeowners pay an average of $8,700 a year. That sounds brutal—until you realize that same town might have 24/7 emergency services, well-maintained roads, and a commuter rail that gets you to New York City in under an hour. Meanwhile, in a low-tax state, you might drive 45 minutes just to find a functioning stoplight. The trade-off isn’t always obvious on paper.

Some people think moving to a low-tax state is the smart money move. But if your job pays less, your commute is longer, and your kid’s school has no art program, are you really saving? And what about healthcare? In states like New York, where taxes are high but Medicaid and public hospitals are widely available, a medical emergency doesn’t mean bankruptcy. In contrast, in states with lower taxes but fewer safety nets, a single hospital visit can wipe out a year’s savings.

There’s no one-size-fits-all answer. The best state for you depends on your income, your family needs, and what you value most—more cash in your pocket, or more reliability in your daily life. The high tax states aren’t the enemy. They’re just different. And sometimes, paying more upfront means paying less later.

Below, you’ll find real travel and lifestyle insights from people who’ve lived in these places—what they love, what they hate, and whether the tax bill was worth it. No fluff. Just facts, stories, and what actually matters when you’re trying to decide where to live, work, or just visit.