Where the tax burdens on the richest Americans are the highest
In which states do the top 1% owe the largest share of their annual income in taxes?
While there’s a lot of talk about raising taxes on the rich in the run-up to the 2020 election, what the wealthiest Americans pay can vary greatly based on where they live.
According to a new study from GOBankingRates, the average single filer in the top 1 percent paid about $447,758 in federal income taxes alone last year.
Some wealthy taxpayers face hefty tax burdens in their respective states, which has resulted in an exodus of individuals from some high-tax locales like New York and California. Florida continues to be a popular destination for residents fleeing high-tax states in the Northeast, while Texas, Arizona and Washington saw an influx of movers from California.
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Here’s a look at some of the states where the tax burden on the richest 1 percent is the highest, as compiled by GOBankingRates:
California
Average income of the top 1 percent: $1,693,094
Total income taxes paid (single filers): $785,698
Total effective income tax rate (single filers): 46.41 percent
Total income taxes paid (married filing jointly): $737,935
Total effective income tax rate (married filing jointly): 43.58 percent
What you need to earn to be in the top 1 percent: $514,694
Minnesota
Average income of the top 1 percent: $1,185,581
Total income taxes paid (single filers): $510,291
Tax effective income tax rate (single filers): 43.05 percent
Total income taxes paid (married filing jointly): $474,799
Total effective income tax rate (married filing jointly): 40.05 percent
What you need to earn to be in the top 1 percent: $443,118
New York
Average income of the top 1 percent: $2,202,480
Total income taxes paid (single filers): $946,058
Tax effective income tax rate (single filers): 42.96 percent
Total income taxes paid (married filing jointly): $891,483
Total effective income tax rate (married filing jointly): 40.47 percent
What you need to earn to be in the top 1 percent: $550,174
New Jersey
Average income of the top 1 percent: $1,581,829
Total income taxes paid (single filers): $671,421
Tax effective income tax rate (single filers): 42.44 percent
Total income taxes paid (married filing jointly): $637,051
Total effective income tax rate (married filing jointly): 40.27 percent
What you need to earn to be in the top 1 percent: $588,575
Oregon
Average income of the top 1 percent: $908,898
Total income taxes paid (single filers): $384,165
Tax effective income tax rate (single filers): 42.27 percent
Total income taxes paid (married filing jointly): $350,221
Total effective income tax rate (married filing jointly): 38.53 percent
What you need to earn to be in the top 1 percent: $358,937
Connecticut
Average income of the top 1 percent: $ $2,522,806
Total income taxes paid (single filers): $1,066,003
Tax effective income tax rate (single filers): 42.25 percent
Total income taxes paid (married filing jointly): $1,030,389
Total effective income tax rate (married filing jointly): 40.84 percent
What you need to earn to be in the top 1 percent: $700,800
Hawaii
Average income of the top 1 percent: $797,001
Total income taxes paid (single filers): $336,071
Tax effective income tax rate (single filers): 42.17 percent
Total income taxes paid (married filing jointly): $297,745
Total effective income tax rate (married filing jointly): 37.36 percent
What you need to earn to be in the top 1 percent: $310,566
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Vermont
Average income of the top 1 percent: $816,579
Total income taxes paid (single filers): $328,444
Tax effective income tax rate (single filers): 40.22 percent
Total income taxes paid (married filing jointly): $294,011
Total effective income tax rate (married filing jointly): 36.01 percent
What you need to earn to be in the top 1 percent: $321,969
Iowa
Average income of the top 1 percent: $788,419
Total income taxes paid (single filers): $317,788
Tax effective income tax rate (single filers): 40.15 percent
Total income taxes paid (married filing jointly): $285,385
Total effective income tax rate (married filing jointly): 36.04 percent
What you need to earn to be in the top 1 percent: $331,572
Wisconsin
Average income of the top 1 percent: $964,358
Total income taxes paid (single filers): $386,235
Tax effective income tax rate (single filers): 40.05 percent
Total income taxes paid (married filing jointly): $352,643
Total effective income tax rate (married filing jointly): 36.57 percent
What you need to earn to be in the top 1 percent: $349,905