What the Richest 1% Pay in Taxes in Your State
Do the wealthy get away with not paying their fair share of taxes? Sens. Bernie Sanders and Elizabeth Warren have both proposed a wealth tax on the ultra-rich. Even multibillionaire Warren Buffett has said that wealthy Americans such as himself should be taxed at a higher rate.
Currently, the top federal income tax rate is 37% for 2019 returns. It applies to incomes of $510,301 and higher for single taxpayers and $612,351 and higher for couples filing jointly. But the top marginal tax rate has been much higher throughout U.S. history. It peaked at 94% in 1944 and 1945, according to the Tax Policy Center. The lowest it has been in recent history was 28% in the late 1980s under former President Ronald Reagan.
So, the wealthy have been taxed more in the past, but they’ve also been taxed less than they are now. Whether the rich pay their fair share of taxes is still up for debate, but they do pay a disproportionate share of taxes in the U.S. The top 1% of taxpayers — those who earn $515,371 or more — paid 38.47% of the total tax revenue collected in 2017, according to the latest figures from the IRS. That’s actually a greater share than what the bottom 90% of taxpayers paid in total, at 29.92%.
And that’s just the federal share of taxes. To find the total tax burden on the top 1%, GOBankingRates analyzed 2019 data from the Tax Foundation on federal and state income tax rates for single filers and married couples filing jointly. The average annual income of the top 1% was sourced from the Economic Policy Institute. GOBankingRates then calculated both the effective and marginal tax rates on the top 1% in every state using an in-house calculator. The study also found how much the top 1% spends on sales taxes by looking at information from the Bureau of Labor Statistics and the Missouri Economic Research and Information Center. Property tax was excluded due to the lack of consistent data for home values of the top 1% in every state.
Not surprisingly, GOBankingRates found that the tax burden on the top 1% varies greatly from state to state. However, in almost every state, at least 30% of the wealthiest taxpayers’ incomes go toward taxes. The study is ranked from lowest to highest average income of the top 1%. Take a look at this state-by-state breakdown of how much the rich pay in taxes.
Last updated: Sept. 30, 2020
50. West Virginia
Average income of the top 1%: $535,648
Single filers:
Total income and sales taxes paid: $197,901
Tax burden: 36.95%
Married couples filing jointly:
Total income and sales taxes paid: $167,769
Tax burden: 31.32%
Income needed to make the top 1%: $258,078
49. Mississippi
Average income of the top 1%: $580,461
Single filers:
Total income and sales taxes paid: $209,941
Tax burden: 36.17%
Married couples filing jointly:
Total income and sales taxes paid: $179,095
Tax burden: 30.85%
Income needed to make the top 1%: $254,362
48. New Mexico
Average income of the top 1%: $615,082
Single filers:
Total income and sales taxes paid: $224,821
Tax burden: 36.55%
Married couples filing jointly:
Total income and sales taxes paid: $193,166
Tax burden: 31.40%
Income needed to make the top 1%: $255,429
47. Maine
Average income of the top 1%: $655,870
Single filers:
Total income and sales taxes paid: $255,733
Tax burden: 38.99%
Married couples filing jointly:
Total income and sales taxes paid: $223,085
Tax burden: 34.01%
Income needed to make the top 1%: $303,897
46. Kentucky
Average income of the top 1%: $719,012
Single filers:
Total income and sales taxes paid: $267,886
Tax burden: 37.26%
Married couples filing jointly:
Total income and sales taxes paid: $235,914
Tax burden: 32.81%
Income needed to make the top 1%: $274,818
45. Alabama
Average income of the top 1%: $743,644
Single filers:
Total income and sales taxes paid: $281,033
Tax burden: 37.79%
Married couples filing jointly:
Total income and sales taxes paid: $249,021
Tax burden: 33.49%
Income needed to make the top 1%: $297,564
44. South Carolina
Average income of the top 1%: $761,185
Single filers:
Total income and sales taxes paid: $301,827
Tax burden: 39.65%
Married couples filing jointly:
Total income and sales taxes paid: $269,611
Tax burden: 35.42%
Income needed to make the top 1%: $318,463
43. Iowa
Average income of the top 1%: $788,419
Single filers:
Total income and sales taxes paid: $324,726
Tax burden: 41.19%
Married couples filing jointly:
Total income and sales taxes paid: $292,323
Tax burden: 37.08%
Income needed to make the top 1%: $331,572
42. Hawaii
Average income of the top 1%: $797,001
Single filers:
Total income and sales taxes paid: $345,741
Tax burden: 43.38%
Married couples filing jointly:
Total income and sales taxes paid: $307,415
Tax burden: 38.57%
Income needed to make the top 1%: $310,566
Find Out: How Much You Need To Be in the Top 5% in Every State
41. Indiana
Average income of the top 1%: $804,275
Single filers:
Total income and sales taxes paid: $290,508
Tax burden: 36.12%
Married couples filing jointly:
Total income and sales taxes paid: $258,753
Tax burden: 32.17%
Income needed to make the top 1%: $316,756
40. Louisiana
Average income of the top 1%: $814,386
Single filers:
Total income and sales taxes paid: $318,246
Tax burden: 39.08%
Married couples filing jointly:
Total income and sales taxes paid: $284,903
Tax burden: 34.98%
Income needed to make the top 1%: $318,393
39. Vermont
Average income of the top 1%: $816,579
Single filers:
Total income and sales taxes paid: $336,217
Tax burden: 41.17%
Married couples filing jointly:
Total income and sales taxes paid: $301,784
Tax burden: 36.96%
Income needed to make the top 1%: $321,969
38. Idaho
Average income of the top 1%: $829,268
Single filers:
Total income and sales taxes paid: $329,845
Tax burden: 39.78%
Married couples filing jointly:
Total income and sales taxes paid: $297,372
Tax burden: 35.86%
Income needed to make the top 1%: $314,532
37. Montana
Average income of the top 1%: $855,976
Single filers:
Total income and sales taxes paid: $334,819
Tax burden: 39.12%
Married couples filing jointly:
Total income and sales taxes paid: $302,615
Tax burden: 35.35%
Income needed to make the top 1%: $321,849
36. Ohio
Average income of the top 1%: $858,965
Single filers:
Total income and sales taxes paid: $325,232
Tax burden: 37.86%
Married couples filing jointly:
Total income and sales taxes paid: $293,260
Tax burden: 34.14%
Income needed to make the top 1%: $334,979
Learn More: 5 Common Reasons You Might Owe Taxes This Year
35. Arkansas
Average income of the top 1%: $864,772
Single filers:
Total income and sales taxes paid: $347,058
Tax burden: 40.13%
Married couples filing jointly:
Total income and sales taxes paid: $314,855
Tax burden: 36.41%
Income needed to make the top 1%: $255,050
34. Delaware
Average income of the top 1%: $869,461
Single filers:
Total income and sales taxes paid: $337,737
Tax burden: 38.84%
Married couples filing jointly:
Total income and sales taxes paid: $305,571
Tax burden: 35.14%
Income needed to make the top 1%: $340,770
33. Arizona
Average income of the top 1%: $882,657
Single filers:
Total income and sales taxes paid: $334,508
Tax burden: 37.90%
Married couples filing jointly:
Total income and sales taxes paid: $301,445
Tax burden: 34.15%
Income needed to make the top 1%: $331,074
32. North Carolina
Average income of the top 1%: $902,972
Single filers:
Total income and sales taxes paid: $348,488
Tax burden: 38.59%
Married couples filing jointly:
Total income and sales taxes paid: $316,486
Tax burden: 35.05%
Income needed to make the top 1%: $343,066
31. Oregon
Average income of the top 1%: $908,898
Single filers:
Total income and sales taxes paid: $384,165
Tax burden: 42.27%
Married couples filing jointly:
Total income and sales taxes paid: $350,221
Tax burden: 38.53%
Income needed to make the top 1%: $358,937
30. Alaska
Average income of the top 1%: $910,059
Single filers:
Total income and sales taxes paid: $299,623
Tax burden: 32.92%
Married couples filing jointly:
Total income and sales taxes paid: $268,262
Tax burden: 29.48%
Income needed to make the top 1%: $400,017
29. Michigan
Average income of the top 1%: $917,701
Single filers:
Total income and sales taxes paid: $344,330
Tax burden: 37.52%
Married couples filing jointly:
Total income and sales taxes paid: $312,449
Tax burden: 34.05%
Income needed to make the top 1%: $328,649
28. Rhode Island
Average income of the top 1%: $928,204
Single filers:
Total income and sales taxes paid: $365,307
Tax burden: 39.36%
Married couples filing jointly:
Total income and sales taxes paid: $333,214
Tax burden: 35.90%
Income needed to make the top 1%: $346,657
27. Oklahoma
Average income of the top 1%: $932,520
Single filers:
Total income and sales taxes paid: $359,662
Tax burden: 38.57%
Married couples filing jointly:
Total income and sales taxes paid: $327,523
Tax burden: 35.12%
Income needed to make the top 1%: $333,139
26. Missouri
Average income of the top 1%: $944,804
Single filers:
Total income and sales taxes paid: $368,117
Tax burden: 38.96%
Married couples filing jointly:
Total income and sales taxes paid: $336,096
Tax burden: 35.57%
Income needed to make the top 1%: $326,839
25. Nebraska
Average income of the top 1%: $945,869
Single filers:
Total income and sales taxes paid: $380,272
Tax burden: 40.20%
Married couples filing jointly:
Total income and sales taxes paid: $347,165
Tax burden: 36.70%
Income needed to make the top 1%: $363,310
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24. Tennessee
Average income of the top 1%: $947,021
Single filers:
Total income and sales taxes paid: $338,610
Tax burden: 35.76%
Married couples filing jointly:
Total income and sales taxes paid: $307,005
Tax burden: 32.42%
Income needed to make the top 1%: $332,913
23. Wisconsin
Average income of the top 1%: $964,358
Single filers:
Total income and sales taxes paid: $391,900
Tax burden: 40.64%
Married couples filing jointly:
Total income and sales taxes paid: $358,308
Tax burden: 37.16%
Income needed to make the top 1%: $349,905
22. Georgia
Average income of the top 1%: $995,576
Single filers:
Total income and sales taxes paid: $392,335
Tax burden: 39.41%
Married couples filing jointly:
Total income and sales taxes paid: $360,209
Tax burden: 36.18%
Income needed to make the top 1%: $371,811
21. Kansas
Average income of the top 1%: $1,034,676
Single filers:
Total income and sales taxes paid: $409,258
Tax burden: 39.55%
Married couples filing jointly:
Total income and sales taxes paid: $376,666
Tax burden: 36.40%
Income needed to make the top 1%: $375,344
20. Utah
Average income of the top 1%: $1,057,066
Single filers:
Total income and sales taxes paid: $410,782
Tax burden: 38.86%
Married couples filing jointly:
Total income and sales taxes paid: $378,816
Tax burden: 35.84%
Income needed to make the top 1%: $374,467
19. North Dakota
Average income of the top 1%: $1,080,845
Single filers:
Total income and sales taxes paid: $396,093
Tax burden: 36.65%
Married couples filing jointly:
Total income and sales taxes paid: $363,823
Tax burden: 33.66%
Income needed to make the top 1%: $445,415
18. Pennsylvania
Average income of the top 1%: $1,100,962
Single filers:
Total income and sales taxes paid: $408,169
Tax burden: 37.07%
Married couples filing jointly:
Total income and sales taxes paid: $376,433
Tax burden: 34.19%
Income needed to make the top 1%: $388,593
17. Virginia
Average income of the top 1%: $1,109,984
Single filers:
Total income and sales taxes paid: $440,250
Tax burden: 39.66%
Married couples filing jointly:
Total income and sales taxes paid: $408,187
Tax burden: 36.77%
Income needed to make the top 1%: $425,144
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16. South Dakota
Average income of the top 1%: $1,130,048
Single filers:
Total income and sales taxes paid: $385,273
Tax burden: 34.09%
Married couples filing jointly:
Total income and sales taxes paid: $353,912
Tax burden: 31.32%
Income needed to make the top 1%: $407,406
15. New Hampshire
Average income of the top 1%: $1,134,101
Single filers:
Total income and sales taxes paid: $436,186
Tax burden: 38.46%
Married couples filing jointly:
Total income and sales taxes paid: $404,214
Tax burden: 35.64%
Income needed to make the top 1%: $405,286
14. Maryland
Average income of the top 1%: $1,135,718
Single filers:
Total income and sales taxes paid: $452,083
Tax burden: 39.81%
Married couples filing jointly:
Total income and sales taxes paid: $419,458
Tax burden: 36.93%
Income needed to make the top 1%: $445,783
13. Minnesota
Average income of the top 1%: $1,185,581
Single filers:
Total income and sales taxes paid: $518,411
Tax burden: 43.73%
Married couples filing jointly:
Total income and sales taxes paid: $482,919
Tax burden: 40.73%
Income needed to make the top 1%: $443,118
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12. Colorado
Average income of the top 1%: $1,261,053
Single filers:
Total income and sales taxes paid: $493,452
Tax burden: 39.13%
Married couples filing jointly:
Total income and sales taxes paid: $461,526
Tax burden: 36.60%
Income needed to make the top 1%: $458,576
11. Texas
Average income of the top 1%: $1,343,897
Single filers:
Total income and sales taxes paid: $465,868
Tax burden: 34.67%
Married couples filing jointly:
Total income and sales taxes paid: $434,507
Tax burden: 32.33%
Income needed to make the top 1%: $440,758
10. Nevada
Average income of the top 1%: $1,354,780
Single filers:
Total income and sales taxes paid: $470,996
Tax burden: 34.77%
Married couples filing jointly:
Total income and sales taxes paid: $439,635
Tax burden: 32.45%
Income needed to make the top 1%: $341,335
9. Washington
Average income of the top 1%: $1,383,223
Single filers:
Total income and sales taxes paid: $483,327
Tax burden: 34.94%
Married couples filing jointly:
Total income and sales taxes paid: $451,966
Tax burden: 32.67%
Income needed to make the top 1%: $451,395
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8. Illinois
Average income of the top 1%: $1,412,024
Single filers:
Total income and sales taxes paid: $561,576
Tax burden: 39.77%
Married couples filing jointly:
Total income and sales taxes paid: $529,611
Tax burden: 37.51%
Income needed to make the top 1%: $456,377
7. Florida
Average income of the top 1%: $1,543,124
Single filers:
Total income and sales taxes paid: $538,935
Tax burden: 34.92%
Married couples filing jointly:
Total income and sales taxes paid: $507,574
Tax burden: 32.89%
Income needed to make the top 1%: $417,587
6. New Jersey
Average income of the top 1%: $1,581,829
Single filers:
Total income and sales taxes paid: $680,304
Tax burden: 43.01%
Married couples filing jointly:
Total income and sales taxes paid: $645,934
Tax burden: 40.83%
Income needed to make the top 1%: $588,575
5. California
Average income of the top 1%: $1,693,094
Single filers:
Total income and sales taxes paid: $798,797
Tax burden: 47.18%
Married couples filing jointly:
Total income and sales taxes paid: $751,034
Tax burden: 44.36%
Income needed to make the top 1%: $514,694
See: What Is a Tax Deduction and How Do Tax Deductions Work?
4. Wyoming
Average income of the top 1%: $1,900,659
Single filers:
Total income and sales taxes paid: $669,610
Tax burden: 35.23%
Married couples filing jointly:
Total income and sales taxes paid: $638,249
Tax burden: 33.58%
Income needed to make the top 1%: $405,596
3. Massachusetts
Average income of the top 1%: $1,904,805
Single filers:
Total income and sales taxes paid: $769,639
Tax burden: 40.41%
Married couples filing jointly:
Total income and sales taxes paid: $737,661
Tax burden: 38.73%
Income needed to make the top 1%: $582,774
2. New York
Average income of the top 1%: $2,202,480
Single filers:
Total income and sales taxes paid: $958,503
Tax burden: 43.52%
Married couples filing jointly:
Total income and sales taxes paid: $903,928
Tax burden: 41.04%
Income needed to make the top 1%: $550,174
1. Connecticut
Average income of the top 1%: $2,522,806
Single filers:
Total income and sales taxes paid: $1,074,605
Tax burden: 42.60%
Married couples filing jointly:
Total income and sales taxes paid: $1,038,991
Tax burden: 41.18%
Income needed to make the top 1%: $700,800
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Methodology: To find the tax burden on the richest 1% in every state, GOBankingRates used the “Income Inequality in the United States” study from the Economic Policy Institute to source the average annual income of the top 1% in every state. GOBankingRates then sourced both the federal and state tax brackets for 2019 from the Tax Foundation. GOBankingRates used an in-house income tax calculator to find both the effective and marginal tax rates on the average income of the top 1% in every state. These calculations were done for taxpayers filing as a single person and for a married couple filing jointly. GOBankingRates then used the 2018 Consumer Expenditure Survey by income decile from the Bureau of Labor Statistics to find the annual expenditure for the top 10% income decile (minus shelter and healthcare) and the Cost of Living Data series from the Missouri Economic Research and Information Center to find the annual expenditure of the top 10% in each state. The annual expenditure of each state was then multiplied by each state’s average combined sales tax (the state rate plus the average local rate) to give the total dollars spent on sales tax for each state. To figure out the total tax burden, GOBankingRates combined the total spent on federal and state income taxes plus the total spent on sales tax annually divided by average income. Property tax was not included due to the lack of consistent data for home values of the top 1% in every state. The standard deduction was used when calculating income tax rates. All data used to conduct this study was compiled and verified on Jan. 24, 2020, and is subject to change.
This article originally appeared on GOBankingRates.com: What the Richest 1% Pay in Taxes in Your State
