Which States Have the Most Tax Debt?

February 14, 2020
Income tax forms
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Would you have guessed that Wyoming residents have the largest income tax debt across all 50 states and the District of Columbia?

Wyoming taxpayers underpay the IRS on average by $8,077, according to SmartAsset, which analyzed by state the number of tax returns with underpayments and the total amount with underpaid taxes. Across all 50 states and the District of Columbia, the average amount owed on tax returns with underpayments is $5,510.

Among the key findings were that tax bills tend to be higher in the Northeast and lower in the Midwest. Northeastern states have the highest average tax bill when compared the data by region. Among all Northeastern returns with underpayments, the average amount owed is $5,962 versus an average of $5,196 among Midwestern returns.

Some taxpayers will need twice as much on hand to pay Uncle Sam. In West Virginia, taxpayers owe $4,200 on average. That’s almost doubled in Wyoming, where taxpayers owe $8,000 on average.

To see how states ranked ...

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