5 Least Tax Friendly States for Middle Class Families

3. Hawaii

Income Tax: 9%

Sales Tax: 4%

Weighted Average Tax: 7%

Hawaii has the third-highest state budget per capita in the country, at an impressive number of $12,896. However, this figure also includes unfunded liabilities amounting to approximately $97 billion. Unfortunately, these consequences of excessive government spending and liabilities are borne by the residents of Hawaii, who face the highest per-capita state tax revenues nationwide.

Hawai also has the second-highest individual income tax rate and shares the highest estate tax rate with Washington. While property tax rates remain low, the high value of homes leads to average payments similar to the national average. Furthermore, Hawaii’s general excise tax is recognized as the most burdensome in the nation that places a disproportionate burden on low-income residents and contributes to higher healthcare costs.