Saturday, April 20, 2024
Hawai'i Free Press

Current Articles | Archives

Wednesday, September 19, 2018
Hawaii State Taxes $6,084 per Capita
By Tax Foundation @ 3:06 PM :: 4167 Views :: Hawaii Statistics, Taxes

How High Are State and Local Tax Collections in Your State?

How High Are State and Local Tax Collections in Your State?

by Katherine Loughead, Tax Foundation, September 19, 2018

Today’s map shows total state and local tax collections per capita in each of the 50 states and the District of Columbia. The District of Columbia’s tax collections per capita ($10,576) are higher than in any state. Among states, tax collections per capita vary widely, from $3,141 per capita in Alabama to $9,182 per capita in North Dakota.

Many people are surprised to see North Dakota as the state with the highest collections per capita, but this leads to an important conversation about the strengths and limitations of different ways to measure taxes. Taxes can be evaluated according to their marginal rates, effective rates, tax burdens, collections, and so on. While per capita measurements allow comparison across states with different populations, they do not show who is actually bearing the economic cost of the tax (the tax incidence or tax burden).

In the case of North Dakota, because the state relies so heavily on severance tax revenue from oil extraction—and therefore “exports” a substantial share of its taxes to residents of other states—total tax collections per capita are an especially poor representation of the actual tax burden that falls on North Dakota residents.

While companies in resource-extraction industries are legally responsible for paying severance taxes to state revenue departments, companies pass the cost of these taxes along to consumers in the form of higher prices. It is ultimately oil and gas consumers across the country who bear the economic cost of oil extraction taxes in North Dakota. Severance taxes in other states have similar impacts on out-of-state residents. It is important to keep both legal incidence and economic incidence in mind when evaluating the true costs of any tax.

It is also important to note that severance taxes are far from the only example of “tax exporting” that states engage in. Travel taxes—such as hotel, car rental, and meal taxes—also disproportionately impact nonvoting nonresidents who have few means of redress. As a result, states that generate substantial amounts of tax revenue from tourism may also show total tax collections per capita that are significantly higher than the actual tax burden that falls on the in-state population.

To get a better idea of the state and local tax burden per capita in your state, see Table 2 of Facts and Figures 2018. 


Related: GE Tax: Audit Shows Tourists pay only 14.1% of Rail Surcharge


TEXT "follow HawaiiFreePress" to 40404

Register to Vote


808 Silent Majority

Aloha Pregnancy Care Center


Antonio Gramsci Reading List

A Place for Women in Waipio

Ballotpedia Hawaii

Broken Trust

Build More Hawaiian Homes Working Group

Christian Homeschoolers of Hawaii

Cliff Slater's Second Opinion

DVids Hawaii


Fix Oahu!

Frontline: The Fixers

Genetic Literacy Project

Grassroot Institute

Hawaii Aquarium Fish Report

Hawaii Aviation Preservation Society

Hawaii Catholic TV

Hawaii Christian Coalition

Hawaii Cigar Association

Hawaii ConCon Info

Hawaii Debt Clock

Hawaii Defense Foundation

Hawaii Family Forum

Hawaii Farmers and Ranchers United

Hawaii Farmer's Daughter

Hawaii Federalist Society

Hawaii Federation of Republican Women

Hawaii History Blog

Hawaii Homeschool Association

Hawaii Jihadi Trial

Hawaii Legal News

Hawaii Legal Short-Term Rental Alliance

Hawaii Matters

Hawaii's Partnership for Appropriate & Compassionate Care

Hawaii Public Charter School Network

Hawaii Rifle Association

Hawaii Shippers Council

Hawaii Smokers Alliance

Hawaii State Data Lab

Hawaii Together



Hiram Fong Papers

Homeschool Legal Defense Hawaii

Honolulu Moms for Liberty

Honolulu Navy League

Honolulu Traffic

House Minority Blog

Imua TMT

Inouye-Kwock, NYT 1992

Inside the Nature Conservancy

Inverse Condemnation

Investigative Project on Terrorism

July 4 in Hawaii

Kakaako Cares

Keep Hawaii's Heroes

Land and Power in Hawaii

Legislative Committee Analysis Tool

Lessons in Firearm Education

Lingle Years

Managed Care Matters -- Hawaii

Malama Pregnancy Center of Maui

Military Home Educators' Network Oahu

Missile Defense Advocacy

MIS Veterans Hawaii

NAMI Hawaii

National Christian Foundation Hawaii

National Parents Org Hawaii

NFIB Hawaii News

No GMO Means No Aloha

Not Dead Yet, Hawaii

NRA-ILA Hawaii

Oahu Alternative Transport


OHA Lies

Opt Out Today

Patients Rights Council Hawaii

PEACE Hawaii

People vs Machine

Practical Policy Institute of Hawaii

Pritchett Cartoons

Pro-GMO Hawaii


Rental by Owner Awareness Assn

ReRoute the Rail

Research Institute for Hawaii USA

Rick Hamada Show

RJ Rummel

Robotics Organizing Committee

School Choice in Hawaii

Sink the Jones Act

Statehood for Guam

Talking Tax

Tax Foundation of Hawaii

The Real Hanabusa

Time Out Honolulu

Trustee Akina KWO Columns

UCC Truths

US Tax Foundation Hawaii Info

VAREP Honolulu

West Maui Taxpayers Association

What Natalie Thinks

Whole Life Hawaii