Americans Think These States Have The Most Unfair Tax Systems

According to a new WalletHub survey, Washington State has the least fair tax system in the country.

After Washington, Americans think the following states have the most unfair tax systems:

• Hawaii
• Arkansas
• Illinois
• Florida
• Indiana
• Mississippi 
• Arizona
• Texas
• Tennessee
• Georgia

The survey also found that over 80% of Americans consider the US tax code "complex" or "extremely complex."

Out of over 1,000 survey respondents, 44% thought the "fairest possible tax code" would have fewer deductions than the current one, and about 65% of respondents think corporations should be taxed at higher rates than consumers.

WalletHub used data from the survey to compile a ranking of the 50 states from most to least fair. The site defined "fair" by comparing the average amount of taxes that respondents thought should be paid by individuals at different income levels with data from the Institute on Taxation and Economic Policy. They explain their methodology in detail on the website.

Washington, for instance, is one of the only states that doesn't collect personal income taxes, which sounds fantastic, until you realize that they don't collect corporate income taxes, either. This clashes with WalletHub survey respondents' belief that corporations should pay more in taxes, likely weighting the state's calculation toward the more unfair end of the spectrum.

Washington also earns a place on WalletHub's list of 10 states where the bottom 20% of earners are most overtaxed, and where the top 1% are most undertaxed.

If you want to know more about how other states' taxes work, Bankrate has a cool tool.

Mouse over the graphic below to see each state's ranking in the complete list. The lower the number, the fairer the state's taxes.

Libby Kane

Executive Editor, Personal Finance Insider

Libby Kane is a personal finance expert who has reported and edited stories about money for more than 10 years. She previously held the Certified Financial Education Instructor (CFEI) certification issued by the National Financial Educators Council.Experience She has written and edited articles on everything from investing tips to model budgets and has interviewed dozens of authors, financial planners, and early retirees to share their advice, experiences, and insights with a global audience. Before joining Business Insider in 2014, she was an associate editor at LearnVest, a personal finance site to help women learn about money. Her work has appeared on sites such as MSN, AOL, Forbes, Slate, and The Street.Her team at Business Insider has tackled projects including:• Women of Means, a series about women taking control of their finances• Inside the Racial Wealth Gap, an exploration of the causes, effects, and potential solutions of the racial wealth gap in the US (finalist, Drum Award, "Editorial Campaign of the Year," 2021)• Strings Attached, a series of essays from people who have left insulated communities and how that journey affected their relationship with money• Master Your Money, a year-long guide for millennials on how to take control of their finances  (first runner up, Drum Award, "Best Use of Social Media," 2022)• The Road to Home, a comprehensive guide to buying your first house (silver award winner, National Association of Real Estate Editors, "Best Multi-Platform Package or Series – Real Estate," 2022)Libby believes in one universal truth about money: Advice is never for everyone. The best strategies, tools, and products depend on your preferences, financial situation, history with money, and goals.ExpertiseHer expertise includes:• Behavioral finance• Early retirement• Budgeting• Saving moneyEducationLibby holds a bachelor's degree from Wellesley College.Outside of personal finance, Libby enjoys reading, baking, and walking her dog.

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