Corporation for Enterprise Development: Tax Burden by Income

States have the flexibility to design their own tax rates and structures to fund public services. Most states rely on three types of taxes: personal income, property and consumption (sales and excise) taxes. Whether the state’s tax system is regressive (taxes the poor more heavily than the rich) or progressive (taxes the rich more heavily than the poor) depends, in part, on how much the state relies on each of these three types of taxes. Income taxes are usually progressive, whereas property taxes and consumption taxes are usually regressive. In almost all states, the poor pay a higher proportion of their income in taxes than wealthy residents do.

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