Minnesota Ranks Eighth Highest in U.S. for Tax Burden

(KNSI) — Tax Day is on the horizon, and as people figure out just how much they may owe, or may be getting back, personal finance website WalletHub released a new study showing Minnesota is the state with the eighth highest tax burden in the country.

Unlike tax rates, which vary widely based on an individual’s circumstances, tax burden measures the proportion of total personal income that residents pay toward state and local taxes. And it isn’t uniform across the U.S., either.

Researchers looked at data from all 50 states across the three tax burdens – personal income taxes, property taxes, and sales and excise taxes to come up with the list.

With an average overall tax burden of 9.41%, Minnesota was sixth highest for overall individual income taxes as 3.11% of personal income, 22nd in property taxes as 2.99% of personal income and 23rd in total sales and excise taxes as 3.41% of personal income.

Tax Day Facts for 2023:

Americans spend 6.5 billion hours doing taxes each year.
The average person spends 13 hours and $250 completing their 1040.
92% of tax returns are expected to be filed electronically.
The average refund in 2023 is $3,079 as of 2/24/2023.
Taxpayers had difficulty reaching the IRS by telephone during the 2022 filing season, with only 10% of calls receiving live assistance and hold times averaging about 29 minutes, compared to nine minutes in 2019. The customer callback option last year led to 3.9 million fewer hours of hold time since 2019.
Over 261 million Americans interact with the IRS each year. That’s more than any other federal agency.

Wallethub says 70% of taxpayers are eligible for free income tax prep and filing.

Taxes need to be postmarked by midnight on April 18th, 2023.

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