Yahoo Finance What the Richest 1% Pay in Taxes in Your State
Does 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 multi-billionaire Warren Buffett has said that it is fair if wealthy Americans such as himself should be taxed at a higher rate.
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Currently, the top federal income tax rate is 37%. It applies to incomes of $539,000 and higher for single taxpayers and $647,850 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 $561,351 or more — paid 42.3% of the total tax revenue collected in 2020, according to the latest figures from the IRS. In fact, the top 1-percent of taxpayers paid more income taxes than the bottom 90-percent all together. Additionally, the top 1-percent of taxpayers paid $723 billion in income taxes and the bottom 90-percent paid $450 billion.
Keep reading to find out how the wealthy fare in your home state.
Alabama
Minimum income to be considered 1%: $404,560
Average income of the 1%: $1,107,769
Average income tax paid by the 1%: $263,845
Average tax rate of the 1%: 23.82%
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Alaska
Minimum income to be considered 1%: $466,905
Average income of the 1%: $999,772
Average income tax paid by the 1%: $253,754
Average tax rate of the 1%: 25.38%
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Arizona
Minimum income to be considered 1%: $485,146
Average income of the 1%: $1,464,848
Average income tax paid by the 1%: $369,426
Average tax rate of the 1%: 25.22%
Arkansas
Minimum income to be considered 1%: $387,666
Average income of the 1%: $1,483,925
Average income tax paid by the 1%: $313,266
Average tax rate of the 1%: 21.11%
California
Minimum income to be considered 1%: $726,188
Average income of the 1%: $2,430,790
Average income tax paid by the 1%: $655,180
Average tax rate of the 1%: 26.95%
Colorado
Minimum income to be considered 1%: $609,919
Average income of the 1%: $1,799,148
Average income tax paid by the 1%: $465,284
Average tax rate of the 1%: 25.86%
Connecticut
Minimum income to be considered 1%: $819,630
Average income of the 1%: $2,994,197
Average income tax paid by the 1%: $850,486
Average tax rate of the 1%: 28.40%
Delaware
Minimum income to be considered 1%: $455,813
Average income of the 1%: $1,130,051
Average income tax paid by the 1%: $286,738
Average tax rate of the 1%: 25.37%
Florida
Minimum income to be considered 1%: $597,787
Average income of the 1%: $2,610,168
Average income tax paid by the 1%: $673,926
Average tax rate of the 1%: 25.82%
Georgia
Minimum income to be considered 1%: $503,524
Average income of the 1%: $1,441,112
Average income tax paid by the 1%: $361,180
Average tax rate of the 1%: 25.06%
Hawaii
Minimum income to be considered 1%: $425,996
Average income of the 1%: $1,220,687
Average income tax paid by the 1%: $294,372
Average tax rate of the 1%: 24.12%
Idaho
Minimum income to be considered 1%: $481,713
Average income of the 1%: $1,554,757
Average income tax paid by the 1%: $360,217
Average tax rate of the 1%: 23.17%
Illinois
Minimum income to be considered 1%: $568,390
Average income of the 1%: $1,777,275
Average income tax paid by the 1%: $468,366
Average tax rate of the 1%: 26.35%
Indiana
Minimum income to be considered 1%: $407,436
Average income of the 1%: $1,067,785
Average income tax paid by the 1%: $262,169
Average tax rate of the 1%: 24.55%
Iowa
Minimum income to be considered 1%: $416,295
Average income of the 1%: $1,082,341
Average income tax paid by the 1%: $260,789
Average tax rate of the 1%: 24.09%
Kansas
Minimum income to be considered 1%: $477,303
Average income of the 1%: $1,433,811
Average income tax paid by the 1%: $358,847
Average tax rate of the 1%: 25.03%
Kentucky
Minimum income to be considered 1%: $383,016
Average income of the 1%: $946,997
Average income tax paid by the 1%: $228,605
Average tax rate of the 1%: 24.14%
Louisiana
Minimum income to be considered 1%: $394,176
Average income of the 1%: $1,000,664
Average income tax paid by the 1%: $248,166
Average tax rate of the 1%: 24.80%
Maine
Minimum income to be considered 1%: $432,311
Average income of the 1%: $1,065,770
Average income tax paid by the 1%: $256,178
Average tax rate of the 1%: 24.04%
Maryland
Minimum income to be considered 1%: $544,756
Average income of the 1%: $1,556,220
Average income tax paid by the 1%: $403,660
Average tax rate of the 1%: 25.94%
Massachusetts
Minimum income to be considered 1%: $777,052
Average income of the 1%: $2,616,125
Average income tax paid by the 1%: $710,286
Average tax rate of the 1%: 27.15%
Michigan
Minimum income to be considered 1%: $434,088
Average income of the 1%: $1,272,669
Average income tax paid by the 1%: $318,257
Average tax rate of the 1%: 25.01%
Minnesota
Minimum income to be considered 1%: $538,836
Average income of the 1%: $1,488,497
Average income tax paid by the 1%: $380,066
Average tax rate of the 1%: 25.53%
Mississippi
Minimum income to be considered 1%: $328,504
Average income of the 1%: $805,583
Average income tax paid by the 1%: $185,595
Average tax rate of the 1%: 23.04%
Missouri
Minimum income to be considered 1%:$430,609
Average income of the 1%: $1,303,645
Average income tax paid by the 1%: $324,992
Average tax rate of the 1%: 24.93%
Montana
Minimum income to be considered 1%: $481,383
Average income of the 1%: $1,383,928
Average income tax paid by the 1%: $338,480
Average tax rate of the 1%: 24.46%
Nebraska
Minimum income to be considered 1%: $460,735
Average income of the 1%: $1,385,275
Average income tax paid by the 1%: $333,805
Average tax rate of the 1%: 24.10%
Nevada
Minimum income to be considered 1%: $519,311
Average income of the 1%: $2,275,520
Average income tax paid by the 1%: $573,199
Average tax rate of the 1%: 25.19%
New Hampshire
Minimum income to be considered 1%: $566,865
Average income of the 1%: $1,720,454
Average income tax paid by the 1%: $451,691
Average tax rate of the 1%: 26.25%
New Jersey
Minimum income to be considered 1%: $703,033
Average income of the 1%: $1,906,729
Average income tax paid by the 1%: $534,143
Average tax rate of the 1%: 28.01%
New Mexico
Minimum income to be considered 1%: $353,858
Average income of the 1%: $936,508
Average income tax paid by the 1%: $218,671
Average tax rate of the 1%: 23.35%
New York
Minimum income to be considered 1%: $668,039
Average income of the 1%: $2,636,907
Average income tax paid by the 1%: $745,923
Average tax rate of the 1%: 28.29%
North Carolina
Minimum income to be considered 1%: $481,474
Average income of the 1%: $1,266,561
Average income tax paid by the 1%: $320,556
Average tax rate of the 1%: 25.31%
North Dakota
Minimum income to be considered 1%: $503,661
Average income of the 1%: $1,267,020
Average income tax paid by the 1%: $313,776
Average tax rate of the 1%: 24.76%
Ohio
Minimum income to be considered 1%: $430,288
Average income of the 1%: $1,167,012
Average income tax paid by the 1%: $292,791
Average tax rate of the 1%: 25.09%
Oklahoma
Minimum income to be considered 1%: $395,813
Average income of the 1%: $1,027,631
Average income tax paid by the 1%: $243,326
Average tax rate of the 1%: 23.68%
Oregon
Minimum income to be considered 1%: $491,840
Average income of the 1%: $1,290,794
Average income tax paid by the 1%: $318,327
Average tax rate of the 1%: 24.66%
Pennsylvania
Minimum income to be considered 1%: $506,367
Average income of the 1%: $1,474,264
Average income tax paid by the 1%: $367,767
Average tax rate of the 1%: 24.95%
Rhode Island
Minimum income to be considered 1%: $471,814
Average income of the 1%: $1,289,506
Average income tax paid by the 1%: $325,743
Average tax rate of the 1%: 25.26%
South Carolina
Minimum income to be considered 1%: $437,319
Average income of the 1%: $1,198,225
Average income tax paid by the 1%: $292,382
Average tax rate of the 1%: 24.40%
South Dakota
Minimum income to be considered 1%: $507,804
Average income of the 1%: $1,796,244
Average income tax paid by the 1%: $412,893
Average tax rate of the 1%: 22.99%
Tennessee
Minimum income to be considered 1%: $471,640
Average income of the 1%: $1,437,792
Average income tax paid by the 1%: $361,203
Average tax rate of the 1%: 25.12%
Texas
Minimum income to be considered 1%: $543,479
Average income of the 1%: $1,756,269
Average income tax paid by the 1%: $453,694
Average tax rate of the 1%: 25.83%
Utah
Minimum income to be considered 1%: $542,357
Average income of the 1%: $1,916,721
Average income tax paid by the 1%: $455,616
Average tax rate of the 1%: 23.77%
Vermont
Minimum income to be considered 1%: $445,587
Average income of the 1%: $1,082,248
Average income tax paid by the 1%: $255,752
Average tax rate of the 1%: 23.63%
Virginia
Minimum income to be considered 1%: $553,800
Average income of the 1%: $1,548,397
Average income tax paid by the 1%: $404,290
Average tax rate of the 1%: 26.11%
Washington
Minimum income to be considered 1%: $692,287
Average income of the 1%: $2,121,289
Average income tax paid by the 1%: $551,288
Average tax rate of the 1%: 25.99%
West Virginia
Minimum income to be considered 1%: $316,172
Average income of the 1%: $678,094
Average income tax paid by the 1%: $157,734
Average tax rate of the 1%: 23.26%
Wisconsin
Minimum income to be considered 1%: $444,969
Average income of the 1%: $1,275,200
Average income tax paid by the 1%: $317,559
Average tax rate of the 1%: 24.90%
Wyoming
Minimum income to be considered 1%: $564,354
Average income of the 1%: $3,338,851
Average income tax paid by the 1%: $827,796
Average tax rate of the 1%: 24.79%
Jordan Rosenfeld, Jami Farkas and Cameron Huddleston contributed to the reporting for this article.
Methodology: In order to discover what the richest 1% pay in taxes in your state, GOBankingRates looked at the US Internal Revenue Service’s (IRS) Statistics of Income (SOI) division’s “Adjusted Gross Income (AGI) Percentile Data by State” data set or tax returns filed for 2020 (the latest data available). With this data GOBankingRates was able to find the following factors for each state: (1) minimum income needed to be considered 1% in your state; (2) average income of the 1%; (3) average income tax paid by the 1%; (4) average tax rate of the 1%. All data was collected on and up to date as of March 6, 2023.
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This article originally appeared on GOBankingRates.com: What the Richest 1% Pay in Taxes in Your State
