It's tax season again, one of the most stressful periods of time that many Americans need to go through. For federal income taxes alone, an average American household needs to pay more than $5,700, according to Bureau of Labor Statistics. The number sounds daunting, and many might start to wonder if there's a way to lower that payment. WalletHub staffer John S Kiernan compares state and local tax rates in 50 states and District of Columbia and compiles a list of the states with lowest tax rates. Kiernan writes,
"As this year’s tax-filing deadline — April 18 in most states — looms closer, it’s fair to wonder which states have the most and least burdensome tax rates. WalletHub’s analysts searched for answers, comparing state and local tax rates in the 50 states and the District of Columbia against the national median. To illustrate, we calculated relative income-tax obligations by applying the effective income-tax rates in each state and locality to the average American’s income. This approach contrasts with our methodology for the Best States to Be Rich & Poor from a Tax Perspective, which considers tax obligations relative to the average income in each state."