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What the Richest 1% Pay in Taxes in Your State

September 10, 2024 — 08:00 am EDT

Written by Laura Beck for GOBankingRates->

Does the wealthy get away with not paying their fair share of taxes? Senators 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% of taxpayers paid more income taxes than the bottom 90% all together. Additionally, the top 1% of taxpayers paid $723 billion in income taxes and the bottom 90% paid $450 billion.

Keep reading to find out how the wealthy fare in your home state. Check out how much you need to earn to be “rich” in every 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%: 23.8%

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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%: 25.4%

Find Out: Trump Wants To Eliminate Income Taxes: 3 Items That Will Instantly Get More Expensive

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%

Denver, USA - People walking on a pedestrianized street in Denver's LoHi district, located near to the city centre.

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%

For You: Here’s How Much You’ll Pay in Taxes Over a Lifetime in Every State

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%: 25.4%

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%: 25.8%

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%: 25.1%

Explore More: Trump Wants To Eliminate Income Taxes: Here’s What That Would Mean for the Economy and Your Wallet

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%: 24.1%

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%: 23.2%

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%: 26.4%

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%: 24.6%

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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%: 24.1%

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%

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%: 24.1%

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%: 24.8%

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%

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%: 25.9%

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%: 27.2%

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%

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St Paul downtown skyline at sunset during christmas.

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%: 25.5%

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%

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%: 24.9%

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%: 24.5%

Sunrise over Omaha, NE on a winter morning.

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%: 24.1%

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%: 25.2%

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%: 26.3%

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%

Check Out: Here’s How Much You’ll Pay in Taxes Over a Lifetime in Every State

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%: 23.4%

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%: 28.3%

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%: 25.3%

Fargo, ND, USA - July 24, 2015: The old railway water tower advertising the Great Northern Bicycle Co in front the Fargo-Moorhead complex in downtown Fargo N.

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%: 24.8%

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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%: 25.1%

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%: 23.7%

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%: 24.7%

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%: 25%

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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%: 25.3%

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%: 24.4%

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%: 23%

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%: 25.1%

May 1, 2015 Dallas, TX USA: People are relaxing and picnicking in free music in the park event in Klyde Warren Park, uptown Dallas, TX.

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%: 25.8%

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%: 23.8%

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%: 23.6%

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%: 26.1%

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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

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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