This paper analyzes the e¤ects of state-level personal tax rates on state tax revenue and individual welfare. The policy analysis based on a general equilibrium model suggests that tax revenues would bene...t from higher wage-income, sales or property taxes, while any increase in dividend-income tax would result in a reduction of revenues. It is also shown that individuals would su¤er from an increase in state-level wage-income tax, dividend-tax or sales tax, while they would bene...t from an

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... crease in property taxes. The heterogeneity across states is determined by a TaxIndex, a weighted average of initial taxes at the state level. JEL Classi...cation: H24, H71, R13, R51