Arizona
- Single filing for the richest 20%
- Average annual income of the top 20%: $254,650
- Total taxes paid: $81,675
- Tax burden: 32.07%
- Single filing for the poorest 20%
- Average annual income of the bottom 20%: $16,732
- Total taxes paid: $1,640
- Tax burden: 9.80%
Difference of tax burden between richest and poorest: 22.27%
Arkansas
- Analysis for top and bottom 20% based on single filing status in Arkansas.
- The wealthy 20% take home an average yearly salary of $196,563 and contribute $61,695 in taxes, resulting in a tax burden of 31.39%.
- The least affluent 20% earn $11,225 annually, pay $1,135 in taxes, and face a tax burden of 10.11%.
The inequality in tax burden is stark at 21.28%.
California
- California singles in the wealthiest bracket rake in $346,847 per year, with tax payments of $143,534 equating to a tax burden of 41.38%.
- The poorest singles in California with an average annual income of $18,110 only contribute $1,969 in taxes, shouldering a tax burden of 10.87%.
The disparity stands at a staggering 30.51%.
Colorado
- The top 20% of single filers in Colorado earn an average of $293,864 annually, paying $104,701 in taxes, resulting in a tax burden of 35.63%.
- On the flip side, the bottom 20% average $20,359 in earnings, paying $2,495 in taxes, carrying a tax burden of 12.25%.
The divergence in tax burden registers at 23.38%.
Connecticut
- For singles in the top 20% income bracket in Connecticut, the average annual income is $340,731, and they pay $132,929 in taxes, leading to a tax burden of 39.01%.
- Conversely, the poorest singles in Connecticut with an average income of $17,449 pay $2,367 in taxes, resulting in a tax burden of 13.57%.
The gap in tax burden amounts to 25.45%.
Delaware
- The juxtaposition is clear in Delaware with the top earners paying exponentially more taxes than the bottom earners, showcasing the disparity in the system.
Analysis of Tax Burden Disparities Across Different US States
Florida Tax Landscape
-
Single filing for the richest 20%
- Average annual income of the top 20%: $261,209
- Total taxes paid: $78,453
- Tax burden: 30.03%
-
Single filing for the poorest 20%
- Average annual income of the bottom 20%: $15,293
- Total taxes paid: $1,314
- Tax burden: 8.59%
Difference in tax burden: 21.44%
Georgia Tax Scene
-
Single filing for the wealthiest 20%
- Average annual income of the wealthiest 20%: $253,577
- Total taxes paid: $89,295
- Tax burden: 35.21%
-
Single filing for the least affluent 20%
- Average annual income of the poorest 20%: $15,412
- Total taxes paid: $1,738
- Tax burden: 11.28%
Difference in tax burden: 23.93%
Hawaiian Tax Outlook
-
Single filing for the top 20% earners
- Average annual income of the top 20%: $297,132
- Total taxes paid: $120,595
- Tax burden: 40.59%
-
Single filing for the bottom 20%
- Average annual income of the bottom 20%: $18,975
- Total taxes paid: $2,807
- Tax burden: 14.79%
Difference in tax burden: 25.79%
Insights from Idaho
-
Single filing for the top 20% wage earners
- Average annual income of the top 20%: $229,521
- Total taxes paid: $77,914
- Tax burden: 33.95%
-
Single filing for the least wealthy 20%
- Average annual income of the least wealthy 20%: $18,560
- Total taxes paid: $2,164
- Tax burden: 11.66%
Difference in tax burden: 22.29%
The Tax Story of Illinois
-
Single filing for the most affluent 20%
- Average annual income of the most affluent 20%: $275,167
- Total taxes paid: $98,026
- Tax burden: 35.62%
-
Single filing for the most disadvantaged 20%
- Average annual income of the most disadvantaged 20%: $15,343
- Total taxes paid: $2,083
- Tax burden: 13.57%
Difference in tax burden: 22.05%
Dissecting Tax Disparities Across the Heartland
Indiana: A Tale of Two Taxes
Indiana, the land of basketball and cornfields, presents a stark dichotomy in tax burdens between its richest and poorest. For those filing single, the richest 20% bear a hefty tax burden of 31.08%, while the poorest grapple with a significantly lighter burden of 11.69%. Married couples from both ends of the income spectrum face similar discrepancies, with disparities as wide as the state’s Hoosier heart, ranging from 19.39% to 7.97%.
Iowa: Taxing Times for The Hawkeye State
In Iowa, where fields of soybeans stretch as far as the eye can see, tax disparities are as vast as the crop fields. Single filers in the top 20% shoulder a whopping 34.14% tax burden, while the bottom 20% manage a more modest 14.16%. Married couples face similar discrepancies, with differences in tax burdens ranging from 19.98% to 16.27%, mirroring the ups and downs of the Cedar Rapids.
Kansas: A Sunflower State of Tax Affairs
Into the plains of Kansas, where amber waves of grain frame the landscape, tax burdens fluctuate like the prairie winds. Single filers in the top 20% face a hefty 34.06% burden, contrasting starkly with the 11.25% burden shouldered by the poorest 20%. As for married couples, the chasm in tax burdens ranges from 22.81% to 19.06%, akin to the ebb and flow of the Kansas River.
Kentucky: Bluegrass State’s Taxing Disparities
In Kentucky, where bluegrass music reverberates through the hills, tax disparities strike a discordant note. Single filers in the 20% richest bear a 32.05% burden, while their counterparts in the lowest income bracket face a much lighter 11.11% burden. The tax gap is equally glaring for married couples, ranging from 20.94% to 9.62%, resembling the rise and fall of Louisville’s skyline.
Louisiana: Jazzing Up Tax Disclosures
Down in the bayous of Louisiana, where jazz and gumbo flavor the air, tax discrepancies are as pronounced as the bends of the Mississippi River. The top 20% of single filers grapple with a 31.15% burden, while the bottom 20% shoulder a mere 9.50%. Married couples in Louisiana also face significant gaps in tax burdens, with variations running from 21.65% to 16.29%, akin to the sway of the Spanish moss.
Maine
- Single filing for the wealthiest 20%
- Average annual income of the top 20%: $231,939
- Total taxes paid: $81,492
- Tax burden: 35.14%
- Single filing for the poorest 20%
- Average annual income of the bottom 20%: $15,968
- Total taxes paid: $1,556
- Tax burden: 9.75%
Difference in tax burden: 25.39%
Maryland
- Single filing for the wealthiest 20%
- Average annual income of the top 20%: $308,921
- Total taxes paid: $114,812
- Tax burden: 37.17%
- Single filing for the poorest 20%
- Average annual income of the bottom 20%: $19,444
- Total taxes paid: $2,804
- Tax burden: 14.42%
Difference in tax burden: 22.74%
Massachusetts
- Single filing for the wealthiest 20%
- Average annual income of the top 20%: $351,952
- Total taxes paid: $134,752
- Tax burden: 38.29%
- Single filing for the poorest 20%
- Average annual income of the bottom 20%: $16,996
- Total taxes paid: $2,465
- Tax burden: 14.50%
Difference in tax burden: 23.79%
Michigan
- Single filing for the wealthiest 20%
- Average annual income of the top 20%: $230,959
- Total taxes paid: $75,791
- Tax burden: 32.82%
- Single filing for the poorest 20%
- Average annual income of the bottom 20%: $14,784
- Total taxes paid: $1,853
- Tax burden: 12.53%
Difference in tax burden: 20.28%
- Married filing jointly for the wealthiest 20%
- Average annual income of the top 20%: $230,959
- Total taxes paid: $63,066
- Tax burden: 27.31%
- Married filing jointly for the poorest 20%
- Average annual income of the bottom 20%: $14,784
- Total taxes paid: $1,759
- Tax burden: 11.90%
Difference in tax burden: 15.41%
Minnesota
- Single filing for the wealthiest 20%
- Average annual income of the top 20%: $270,174
- Total taxes paid: $102,387
- Tax burden: 37.90%
- Single filing for the poorest 20%
- Average annual income of the bottom 20%: $18,980
- Total taxes paid: $2,241
- Tax burden: 11.81%
Difference in tax burden: 26.09%
- Married filing jointly for the wealthiest 20%
- Average annual income of the top 20%: $270,174
- Total taxes paid: $82,230
- Tax burden: 30.44%
- Married filing jointly for the poorest 20%
- Average annual income of the bottom 20%: $18,980
- Total taxes paid: $1,452
- Tax burden: 7.65%
Difference in tax burden: 22.79%
Mississippi
- Single filing for the wealthiest 20%
- Average annual income of the top 20%: $184,924
- Total taxes paid: $57,236
- Tax burden: 30.95%
- Single filing for the poorest 20%
- Average annual income of the bottom 20%: $0,624
- Total taxes paid: $1,321
- Tax burden: 15.41%
Examining Tax Burden Disparities Among Different Income Brackets
Missouri
-
Single filing for richest 20%
- Average annual income of richest 20%: $222,783
- Total taxes paid: $72,906
- Tax burden: 32.73%
-
Single filing for poorest 20%
- Average annual income of poorest 20%: $14,324
- Total taxes paid: $1,143
- Tax burden: 7.98%
Difference of tax burden: 24.74%
Montana
-
Single filing for richest 20%
- Average annual income of richest 20%: $228,532
- Total taxes paid: $79,409
- Tax burden: 34.75%
-
Single filing for poorest 20%
- Average annual income of poorest 20%: $15,384
- Total taxes paid: $1,528
- Tax burden: 9.93%
Difference of tax burden: 19.05%
Nebraska
-
Single filing for richest 20%
- Average annual income of richest 20%: $234,995
- Total taxes paid: $81,701
- Tax burden: 34.77%
-
Single filing for poorest 20%
- Average annual income of poorest 20%: $16,346
- Total taxes paid: $1,758
- Tax burden: 10.75%
Difference of tax burden: 24.01%
Nevada
-
Single filing for richest 20%
- Average annual income of richest 20%: $247,917
- Total taxes paid: $72,784
- Tax burden: 29.36%
-
Single filing for poorest 20%
- Average annual income of poorest 20%: $16,162
- Total taxes paid: $1,468
- Tax burden: 9.08%
Difference of tax burden: 20.28%
New Hampshire
-
Single filing for richest 20%
- Average annual income of richest 20%: $288,945
- Total taxes paid: $90,282
- Tax burden: 31.25%
-
Single filing for poorest 20%
- Average annual income of poorest 20%: $21,841
- Total taxes paid: $2,470
- Tax burden: 11.31%
Difference of tax burden: 19.94%
Insights into State Taxation Disparities
New Jersey: Garden State Tax Realities
-
Single filing for the richest 20%
- Average annual income of the wealthiest 20%: $344,854
- Total taxes paid: $133,968
- Tax burden: 38.85%
-
Single filing for the poorest 20%
- Average annual income of the least affluent 20%: $19,682
- Total taxes paid: $2,364
- Tax burden: 12.01%
Difference in tax burden: 26.83%
New Mexico: Enchanting Tax Dynamics
-
Single filing for the top 20%
- Average annual income of the wealthiest quintile: $209,081
- Total taxes paid: $66,587
- Tax burden: 31.85%
-
Single filing for the bottom 20%
- Average annual income of the poorest quintile: $11,775
- Total taxes paid: $901
- Tax burden: 7.65%
Difference in tax burden: 24.20%
New York: Empire State Tax Disparities
-
Single filing for the wealthiest 20%
- Average annual income of the richest quintile: $326,428
- Total taxes paid: $125,682
- Tax burden: 38.50%
-
Single filing for the poorest 20%
- Average annual income of the poorest quintile: $13,591
- Total taxes paid: $1,263
- Tax burden: 9.30%
Difference in tax burden: 29.21%
North Carolina: Tar Heel Tax Insights
-
Single filing for the top 20%
- Average annual income of the richest quintile: $241,821
- Total taxes paid: $81,163
- Tax burden: 33.56%
-
Single filing for the bottom 20%
- Average annual income of the poorest quintile: $15,096
- Total taxes paid: $1,391
- Tax burden: 9.21%
Difference in tax burden: 24.35%
North Dakota: Roughrider Tax Realms
-
Single filing for the richest 20%
- Average annual income of the wealthiest quintile: $245,836
- Total taxes paid: $76,615
- Tax burden: 31.17%
-
Single filing for the poorest 20%
- Average annual income of the least affluent quintile: $16,049
- Total taxes paid: $1,472
- Tax burden: 9.17%
Difference in tax burden: 21.99%
Ohio: Buckeye State Tax Portraits
-
Single filing for the wealthiest 20%
Analysis of Tax Burdens Across Different States
Exploring Disparities in Tax Burdens Across States
Comparing Income Groups
- Average annual income of richest 20%: $226,591
- Total taxes paid: $71,578
- Tax burden: 31.59%
- Single filing for poorest 20%
- Average annual income of poorest 20%: $14,195
- Total taxes paid: $1,120
- Tax burden: 7.89%
Difference of tax burden: 23.70%
Oklahoma Tax Insights
- Single filing for richest 20%
- Average annual income of richest 20%: $210,114
- Total taxes paid: $67,200
- Tax burden: 31.98%
- Single filing for poorest 20%
- Average annual income of poorest 20%: $13,082
- Total taxes paid: $1,137
- Tax burden: 8.69%
Difference of tax burden: 23.29%
Rhode Island’s Tax Landscape
- Single filing for richest 20%
- Average annual income of richest 20%: $266,185
- Total taxes paid: $93,316
- Tax burden: 35.06%
- Single filing for poorest 20%
- Average annual income of poorest 20%: $15,526
- Total taxes paid: $1,563
- Tax burden: 10.06%
Difference of tax burden: 24.99%
Insight on South Carolina Taxes
- Single filing for richest 20%
- Average annual income of richest 20%: $226,183
- Total taxes paid: $78,126
- Tax burden: 34.54%
- Single filing for poorest 20%
- Average annual income of poorest 20%: $13,906
- Total taxes paid: $1,391
- Tax burden: 10.00%
Difference of tax burden: 24.54%
Analyzing State Tax Burden Disparities Across the United States
The Great Divide
Examining the tax landscape in different states reveals a stark contrast in the burden shouldered by taxpayers across income brackets. The disparity in tax payments and associated burdens is a reflection of the socio-economic fabric woven into the financial structures of states.
South Dakota
- Single filing for richest 20%
- Average annual income of richest 20%: $220,281
- Total taxes paid: $61,741
- Tax burden: 28.03%
- Single filing for poorest 20%
- Average annual income of poorest 20%: $15,826
- Total taxes paid: $1,408
- Tax burden: 8.90%
Difference of tax burden: 19.13%
Tennessee
- Single filing for richest 20%
- Average annual income of richest 20%: $226,707
- Total taxes paid: $64,289
- Tax burden: 28.36%
- Single filing for poorest 20%
- Average annual income of poorest 20%: $14,667
- Total taxes paid: $1,204
- Tax burden: 8.21%
Difference of tax burden: 20.15%
Texas
- Single filing for richest 20%
- Average annual income of richest 20%: $261,583
- Total taxes paid: $78,612
- Tax burden: 30.05%
- Single filing for poorest 20%
- Average annual income of poorest 20%: $15,762
- Total taxes paid: $1,397
- Tax burden: 8.86%
Difference of tax burden: 21.19%
Utah
- Single filing for richest 20%
- Average annual income of richest 20%: $267,902
- Total taxes paid: $94,260
- Tax burden: 35.18%
- Single filing for poorest 20%
- Average annual income of poorest 20%: $23,988
- Total taxes paid: $3,972
- Tax burden: 16.56%
Difference of tax burden: 18.63%
Vermont
- Single filing for richest 20%
- Average annual income of richest 20%: $233,602
- Total taxes paid: $82,052
- Tax burden: 35.12%
- Single filing for poorest 20%
- Average annual income of poorest 20%: $17,704
- Total taxes paid: $2,115
- Tax burden: 11.95%
Difference of tax burden: 23.18%
Tax Burden Disparity Across US States
Analyzing Tax Burden Disparity Across US States
Virginia Tax Analysis
Virginia showcases a stark contrast in tax burden between the richest and the poorest. Single filers in the top 20% face a tax burden of 37.27%, compared to a mere 11.95% for those in the bottom 20%. The gap widens further for married joint filers, with the top 20% bearing a 30.45% tax burden, while the lowest 20% shoulder only 7.86%, marking a significant 22.59% difference.
Washington Tax Overview
In Washington, the tax disparity is evident, with a tax burden of 32.40% for the wealthiest single filers compared to 10.66% for the poorest. For married couples, the contrast remains pronounced, at 25.48% for the richest 20% and a mere 7.65% for the poorest, posing a significant 21.74% gap.
Insights from West Virginia
West Virginia portrays a tax burden divisiveness as well. Single filers in the top income bracket face a tax burden of 32.39%, contrasting with the 10.76% burden on the lowest earners. Married joint filers experience a 27.49% burden for the wealthiest 20% versus a 10.76% burden for the least affluent, indicating a 16.73% gap.
Wisconsin Tax Examination
Wisconsin demonstrates a substantial divergence in tax burdens, with the top 20% of single filers bearing a 33.36% tax burden compared to 10.41% for the bottom 20%. For married joint filers, the contrast stands at 27.57% and 7.65% for the wealthiest and poorest, respectively, revealing a 19.92% disparity.
Wyoming Tax Differential
Wyoming showcases discrepancies in tax burdens as well, with a 27.74% burden on the richest single filers versus 8.94% on the poorest. Married couples in the top 20% face a 22.45% burden, while the bottom 20% encounter a 7.65% burden, highlighting a 14.80% gap.
The Tax Disparity: A State-by-State Analysis of Rich and Poor Tax Burdens
Diving Deep into Expenditure Costs
The Missouri Economic and Research Information Center delved into the financial landscape by examining the national average overall expenditure costs for the poorest 20% (bottom quintile) and the richest 20% (top quintile). This data, sourced from the Bureau of Labor Statistics Consumer Expenditure Survey, provided a nuanced understanding of how individuals in different income brackets interact with the economy.
Exploring Tax Brackets and Rates
An analysis of the 2023 federal income tax brackets and rates alongside the 2023 state income tax brackets and rates shed light on the tax obligations faced by Americans. These figures, sourced from the TaxFoundation, allowed for a comprehensive view of the tax landscape in the country.
Unpacking the Tax Burden
Utilizing in-house calculations, GOBankingRates determined marginal tax rates, effective tax rates, and total taxes paid for federal income tax, state income tax, FICA tax, and local sales tax rates. By combining the overall cost of living index with the average expenditure costs for each quintile, a detailed picture of the tax burden on the richest and poorest quintiles in each state emerged.
Comparing Rich and Poor Tax Burdens
The crux of the analysis focused on comparing the taxes paid by the richest and poorest residents of each state. By dividing the total spent on federal income tax, state income tax, and state and local sales taxes by the average income, GOBankingRates revealed the disparities in tax burdens. Notably, property tax was excluded due to inconsistent data on home values between different income groups.
Current and Comprehensive Data
All the data collected is up to date as of Feb. 12, 2024, offering investors and policymakers a current snapshot of the tax landscape in the United States.