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 multi-billionaire Warren Buffett has said that 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 $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.
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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%.
See what the richest 1% pay in taxes in every state.
Last updated: Sept. 21, 2021
50. Alabama
Minimum income to be considered 1%: $394,842
Average income of the 1%: $999,352
Average income tax paid by the 1%: $233, 478
Average tax rate of the 1%: 23.36%
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49. Alaska
Minimum income to be considered 1%: $444,471
Average income of the 1%: $936,890
Average income tax paid by the 1%: $232,313
Average tax rate of the 1%: 24.8%
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48. Arizona
Minimum income to be considered 1%: $459,757
Average income of the 1%: $1,268,048
Average income tax paid by the 1%: $307,566
Average tax rate of the 1%: 24.26%
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47. Arkansas
Minimum income to be considered 1%: $375,940
Average income of the 1%: $1,378,629
Average income tax paid by the 1%: $293,227
Average tax rate of the 1%: 21.27%
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46. California
Minimum income to be considered 1%: $680,687
Average income of the 1%: $2,238,758
Average income tax paid by the 1%: $590,476
Average tax rate of the 1%: 26.38%
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45. Colorado
Minimum income to be considered 1%: $577,452
Average income of the 1%: $1,645,616
Average income tax paid by the 1%: $409,526
Average tax rate of the 1%: 24.89%
44. Connecticut
Minimum income to be considered 1%: $818,755
Average income of the 1%: $2,840,261
Average income tax paid by the 1%: $783,687
Average tax rate of the 1%: 27.59%
43. Delaware
Minimum income to be considered 1%: $438,810
Average income of the 1%: $1,095,713
Average income tax paid by the 1%: $262,817
Average tax rate of the 1%: 23.99%
42. Florida
Minimum income to be considered 1%: $569,651
Average income of the 1%: $2,190,557
Average income tax paid by the 1%: $551,947
Average tax rate of the 1%: 25.20%
41. Georgia
Minimum income to be considered 1%: $496,599
Average income of the 1%: $1,386,410
Average income tax paid by the 1%: $327,111
Average tax rate of the 1%: 23.59%
40. Hawaii
Minimum income to be considered 1%: $414,150
Average income of the 1%: $929,822
Average income tax paid by the 1%: $221,138
Average tax rate of the 1%: 23.78%
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39. Idaho
Minimum income to be considered 1%: $422,261
Average income of the 1%: $1,138,855
Average income tax paid by the 1%: $256,089
Average tax rate of the 1%: 22.49%
38. Illinois
Minimum income to be considered 1%: $572,933
Average income of the 1%: $1,842,478
Average income tax paid by the 1%: $480,696
Average tax rate of the 1%: 26.09%
37. Indiana
Minimum income to be considered 1%: $399,625
Average income of the 1%: $1,017,307
Average income tax paid by the 1%: $243,425
Average tax rate of the 1%: 23.93%
36. Iowa
Minimum income to be considered 1%: $402,964
Average income of the 1%: $998,306
Average income tax paid by the 1%: $239,065
Average tax rate of the 1%: 23.95%
35. Kansas
Minimum income to be considered 1%: $457,566
Average income of the 1%: $1,314,656
Average income tax paid by the 1%: $323,706
Average tax rate of the 1%: 24.62%
34. Kentucky
Minimum income to be considered 1%: $377,039
Average income of the 1%: $1,047,733
Average income tax paid by the 1%: $246,673
Average tax rate of the 1%: 23.54%
33. Louisiana
Minimum income to be considered 1%: $430,621
Average income of the 1%: $1,095,274
Average income tax paid by the 1%: $270,487
Average tax rate of the 1%: 24.7%
32. Maine
Minimum income to be considered 1%: $396,647
Average income of the 1%: $870,414
Average income tax paid by the 1%: $200,036
Average tax rate of the 1%: 22.98%
31. Maryland
Minimum income to be considered 1%: $537,046
Average income of the 1%: $1,368,091
Average income tax paid by the 1%: $352,226
Average tax rate of the 1%: 25.75%
30. Massachusetts
Minimum income to be considered 1%: $739,998
Average income of the 1%: $1,281,016
Average income tax paid by the 1%: $311,992
Average tax rate of the 1%: 24.36%
29. Michigan
Minimum income to be considered 1%: $435,053
Average income of the 1%: $1,047,733
Average income tax paid by the 1%: $246,673
Average tax rate of the 1%: 23.54%
28. Minnesota
Minimum income to be considered 1%: $524,940
Average income of the 1%: $1,405,745
Average income tax paid by the 1%: $357,864
Average tax rate of the 1%: 25.46%
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27. Mississippi
Minimum income to be considered 1%: $330,119
Average income of the 1%: $759,755
Average income tax paid by the 1%: $172,237
Average tax rate of the 1%: 22.67%
26. Missouri
Minimum income to be considered 1%: $429,501
Average income of the 1%: $1,264,240
Average income tax paid by the 1%: $310,766
Average tax rate of the 1%: 24.58%
25. Montana
Minimum income to be considered 1%: $425,321
Average income of the 1%: $1,078,275
Average income tax paid by the 1%: $249,643
Average tax rate of the 1%: 23.15%
24. Nebraska
Minimum income to be considered 1%: $435,924
Average income of the 1%: $1147,617
Average income tax paid by the 1%: $274,443
Average tax rate of the 1%: 23.91%
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23. Nevada
Minimum income to be considered 1%: $493,199
Average income of the 1%: $2,184,285
Average income tax paid by the 1%: $530,767
Average tax rate of the 1%: 24.30%
22. New Hampshire
Minimum income to be considered 1%: $519,416
Average income of the 1%: $1,460,801
Average income tax paid by the 1%: $367,933
Average tax rate of the 1%: 25.19%
21. New Jersey
Minimum income to be considered 1%: $694,522
Average income of the 1%: $1,855,914
Average income tax paid by the 1%: $512,540
Average tax rate of the 1%: 27.62%
20. New Mexico
Minimum income to be considered 1%: $351,093
Average income of the 1%: $837,388
Average income tax paid by the 1%: $194,716
Average tax rate of the 1%: 23.25%
19. New York
Minimum income to be considered 1%: $709,741
Average income of the 1%: $2,739,623
Average income tax paid by the 1%: $742,236
Average tax rate of the 1%: 27.09%
18. North Carolina
Minimum income to be considered 1%: $462,850
Average income of the 1%: $1,188,279
Average income tax paid by the 1%: $295,203
Average tax rate of the 1%: 24.84%
17. North Dakota
Minimum income to be considered 1%: $493,941
Average income of the 1%: $1,173,821
Average income tax paid by the 1%: $293,174
Average tax rate of the 1%: 24.98%
16. Ohio
Minimum income to be considered 1%: $420,231
Average income of the 1%: $1,100,839
Average income tax paid by the 1%: $270,254
Average tax rate of the 1%: 24.55%
15. Oklahoma
Minimum income to be considered 1%: $428,617
Average income of the 1%: $1,109,039
Average income tax paid by the 1%: $262,110
Average tax rate of the 1%: 23.63%
14. Oregon
Minimum income to be considered 1%: $472,725
Average income of the 1%: $1,193,735
Average income tax paid by the 1%: $284,926
Average tax rate of the 1%: 23.87%
13. Pennsylvania
Minimum income to be considered 1%: $494,648
Average income of the 1%: $1,372,479
Average income tax paid by the 1%: $348,101
Average tax rate of the 1%: 25.36%
12. Rhode Island
Minimum income to be considered 1%: $450,935
Average income of the 1%: $1,187,91
Average income tax paid by the 1%: $294,807
Average tax rate of the 1%: 24.82%
11. South Carolina
Minimum income to be considered 1%: $423,744
Average income of the 1%: $1,064,627
Average income tax paid by the 1%: $253,460
Average tax rate of the 1%: 23.81%
10. South Dakota
Minimum income to be considered 1%: $460,683
Average income of the 1%: $1,414,152
Average income tax paid by the 1%: $334,709
Average tax rate of the 1%: 23.67%
9. Tennessee
Minimum income to be considered 1%: $449,871
Average income of the 1%: $1,346,134
Average income tax paid by the 1%: $337,828
Average tax rate of the 1%: 25.1%
8. Texas
Minimum income to be considered 1%: $542,780
Average income of the 1%: $1,681,737
Average income tax paid by the 1%: $435,431
Average tax rate of the 1%: 25.89%
7. Utah
Minimum income to be considered 1%: $483,006
Average income of the 1%: $1,461,523
Average income tax paid by the 1%: $347,432
Average tax rate of the 1%: 23.77%
6. Vermont
Minimum income to be considered 1%: $412,592
Average income of the 1%: $1,002,454
Average income tax paid by the 1%: $227,011
Average tax rate of the 1%: 22.65%
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5. Virginia
Minimum income to be considered 1%: $534,077
Average income of the 1%: $1,412,355
Average income tax paid by the 1%: $364,251
Average tax rate of the 1%: 25.79%
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4. Washington
Minimum income to be considered 1%: $625,720
Average income of the 1%: $1,801,457
Average income tax paid by the 1%: $455,240
Average tax rate of the 1%: 25.27%
3. West Virginia
Minimum income to be considered 1%: $319,845
Average income of the 1%: $667,368
Average income tax paid by the 1%: $156,611
Average tax rate of the 1%: 23.47%
2. Wyoming
Minimum income to be considered 1%: $528,153
Average income of the 1%: $2,245,174
Average income tax paid by the 1%: $526,595
Average tax rate of the 1%: 23.45%
1. Wisconsin
Minimum income to be considered 1%: $434,346
Average income of the 1%: $1,203,326
Average income tax paid by the 1%: $297,267
Average tax rate of the 1%: 24.70%
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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 2018 (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 Dec. 17, 2020.
This article originally appeared on GOBankingRates.com: What the Richest 1% Pay in Taxes in Your State