How Much Federal Tax Money Comes From California
Which States Pay The Most Federal Taxes?
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Looking at the corporeality of federal income taxes paid by people around the country can serve every bit a reminder that you may be able to do something well-nigh your own revenue enhancement brunt.
Taxation season reminds anybody how much they pay to support the federal budget.
But are y'all living in a part of the land where the tax burden falls particularly heavily?
A state-past-state examination of federal income taxes paid by individuals in each country found that, while people everywhere contribute to the federal government, residents of some states clearly pay more than others.
What Land Pays the Almost in Taxes?
- What State Pays the Most in Taxes?
- Total Federal Taxes Paid past Land
- Federal Income Taxes Paid Per Capita
- Tax Brunt as a Percent of Income
- Biggest Percentage Increment in Federal Income Taxes
- Changes Expected in Adjacent Year's Study
- Methodology
- Planning Your Tax Strategy
- Federal Taxes Paid by State – Full Listing
If yous're wondering who pays the most federal taxes, it depends on how you look at information technology. These iv perspectives highlight the differences from country to land:
Most private taxes – California – $234.5B
In total, California contributes the about individual taxes to the federal budget.
As of the most recent tax yr for which figures were bachelor (2017), Californians paid over $234 billion in federal income taxes. That's about 15% of the national total, and nearly 95 times as much equally paid by residents of Vermont.
Most per adult resident – Connecticut – $10,364 individually
Connecticut pays the most per adult resident of any state, at $10,364.
Fifty-fifty though residents of the District of Columbia (which is not a state) pay more, the tax brunt shouldered by people in Connecticut is more than three times the average of $ii,883 paid by Mississippi residents. (Taxes paid by people living in the District of Columbia – $10,518.)
Highest per centum of income – Washington, DC – 17.40% of income
Residents of Washington, D.C. also pay the highest percentage of their income in federal taxes, at an boilerplate of 17.40%. That's a rate more than 60% higher than the average 10.67% in federal taxes paid by residents of Mississippi.
Greatest increase in federal taxation burden per developed resident – Florida – 41.21%
Over the 5 years since this study was start conducted, Florida saw the biggest increase in federal taxation burden paid per adult with a rise of 41.21%.
In contrast, the average tax brunt paid by people in North Dakota shrank by 15.32% over that same menstruation.
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Total Federal Taxes Paid past State
California has the largest population of any land, and those residents earn a relatively high average income. When you combine those two factors, it'southward no surprise that California residents pay more federal taxes than those of any other land.
Vermont pays the to the lowest degree. Full federal income taxes in Vermont are virtually $2.5 billion. That'due south due to the combination of having the second-smallest adult population of whatsoever state and a below-average per capita income.
Here are the top 10 states in terms of total federal income taxes paid:
| FEDERAL TAXES PAID BY STATE | ||
|---|---|---|
| RANK | STATE | FEDERAL TAXES PAID BY Land (in thousands) |
| i | California | $234,499,671 |
| 2 | New York | $140,510,002 |
| 3 | Texas | $133,417,081 |
| 4 | Florida | $116,970,551 |
| 5 | Illinois | $67,180,388 |
| 6 | New Bailiwick of jersey | $62,812,657 |
| vii | Pennsylvania | $59,450,829 |
| 8 | Massachusetts | $54,205,161 |
| 9 | Washinton | $45,090,597 |
| 10 | Virginia | $44,245,528 |
Federal Taxes Paid Per Capita
While the list of states paying the most total federal income taxes is dominated past high-population states, the picture changes somewhat when you look at information technology in terms of the average corporeality paid per person.
Though it has an adult population of just 575,000 and is not a state, the District of Columbia has one of the highest boilerplate income rates at $threescore,435 per adult resident. Loftier average incomes tend to mean high revenue enhancement burdens, which is why the District of Columbia tops the list of federal income taxes paid per developed.
Mississippi residents have the everyman average federal tax brunt, at $2,883 per developed resident. However, this is zilch to celebrate because it'due south due largely to as well having the lowest average income.
| FEDERAL TAXES PAID PER CAPITA | ||
|---|---|---|
| RANK | Country | FEDERAL TAXES PAID PER CAPITA (in dollars) |
| ane | Commune of Columbia | $10,517.59 |
| 2 | Connecticut | $10,363.87 |
| three | Massachusetts | $nine,793.12 |
| 4 | New York | $9,078.33 |
| 5 | New Jersey | $9,028.03 |
| 6 | Washington | $7,676.76 |
| 7 | California | $7,670.53 |
| viii | New Hampshire | $seven,183.49 |
| 9 | Maryland | $7,002.40 |
| ten | Wyoming | $vi,936.12 |
Tax Burden as a Percentage of Income
In general, the more income y'all make, the more taxes yous'll pay; but other things bear upon your tax burden too. How yous make your income and what kind of deductions you claim also have an affect.
Naturally, the Commune of Columbia topped the list; but Mississippi was the only state where adult residents paid an average of less than 11% of income in federal taxes. The boilerplate percent federal tax burden in Mississippi is x.67%.
Looking at federal taxes paid equally a percentage of income yields several of the same names that appeared on the list of taxes paid per capita, simply there are as well some differences:
| FEDERAL TAXES AS A Pct OF INCOME | ||
|---|---|---|
| RANK | STATE | FEDERAL TAXES AS A PERCENTAGE OF INCOME (percentage of income) |
| 1 | District Of Columbia | 17.40% |
| 2 | Connecticut | 16.60% |
| 3 | New York | 16.57% |
| 4 | Massachusetts | 16.30% |
| five | Florida | 15.87% |
| half-dozen | New Jersey | xv.74% |
| seven | California | 15.nineteen% |
| viii | Washington | fourteen.91% |
| ix | Texas | fourteen.87% |
| 10 | Illinois | 14.54% |
Biggest Percent Increase in Federal Income Taxes
MoneyRates.com offset conducted this study of what individuals in different states pay in federal taxes five years ago. People in nearly states are paying more than now than they were and then, but there are a couple of exceptions.
On boilerplate, people in Florida take seen the biggest increase in their federal income tax bills. The average federal tax paid per adult in the land of Florida has risen by 41.21% in just five years.
Boilerplate personal income tax burdens rose in 48 of the 50 states plus the District of Columbia over the last five years. The lone exceptions were Wyoming and Northward Dakota. Notably, these are two of simply three states to also come across a refuse in boilerplate income per adult over that same five years.
Here are united states of america that have seen the largest percentage increases in average revenue enhancement burden per person in the past five years:
| PER CAPITA 5-Yr Revenue enhancement INCREASE | ||
|---|---|---|
| RANK | State | PER CAPITA v-Twelvemonth TAX Increment (per capita) |
| 1 | Florida | 41.21% |
| 2 | Washington | 36.49% |
| 3 | Oregon | 36.25% |
| 4 | Hawaii | 35.88% |
| five | California | 33.43% |
| 6 | New York | 31.95% |
| 7 | Massachusetts | 31.47% |
| viii | South Carolina | 30.23% |
| 9 | Georgia | 29.39% |
| 10 | New Hampshire | 28.77% |
Changes Expected in Side by side Year'southward Written report
Considering it takes a while for the Internal Revenue Service to finish collecting taxes, reviewing returns and compiling data, information based on taxation returns is generally a couple years old. That ways at that place might exist an peculiarly big change in tax burdens in next yr's version of this report.
The Tax Reform Human activity was passed in late 2017, which means it first took effect for the 2018 tax year. We expect data for that year to exist available in time for next year'south written report.
While changes to the tax brackets made by that law will apply uniformly to people across the land, one change has impacted people in some states much more than than others.
Capping the state and local revenue enhancement (SALT) deduction at $10,000 volition exist especially hard on taxpayers in states where:
- State income taxation rates are high
- Local property taxes are loftier
- Average incomes are relatively loftier
While residents of some states volition by and large benefit from the general lowering of revenue enhancement rates that was part of the Revenue enhancement Reform Act, the capping of the SALT deduction has likely caused others to owe more taxes.
States with the characteristics listed above are likely to climb college on the lists for all categories of this study: total taxes paid, per capita taxes paid, percent tax burden and increase over time.
Methodology
Data on taxes and income levels came from the IRS while figures for the developed population of each state and the District of Columbia came from the U.S. Demography Bureau.
This study focused on individual income taxes only. The per capita figures were calculated by dividing the full taxes paid by individuals in each state by the number of adult residents of that state.
The tax burden as a percentage of income was calculated by dividing the total taxes in each state by the declared income on tax returns from those states. The 5-yr percentage increment was calculated past comparing the per capita tax burden from this twelvemonth with the per capita tax burden from the original written report conducted in 2015.
Planning Your Taxation Strategy
This wait at the amount of federal income taxes paid past the people of each state can serve as a reminder that there may withal be time to do something about your own revenue enhancement burden.
Whether you lot live in a state with a relatively heavy or light revenue enhancement burden, a little planning might help lower the amount you pay.
1. Open an Individual Retirement Agreement (IRA)
Opening an IRA business relationship or contributing to an existing 1 past April 15 could brand that burden a little lighter this tax season.
This blazon of tax-advantaged account allows y'all to win twice – once by reducing this year'south tax burden and a second time by adding to your retirement nest egg.
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two. Fourth dimension your contributions
While contributions to a 401(yard) program or a traditional IRA are both generally deductible, a crucial difference is in when those contributions must be made:
401(k) program contributions typically must be made during the calendar year for those contributions to be deducted in that revenue enhancement year.
However, contributions to a traditional IRA tin can be fabricated up until the April fifteen filing deadline and still exist deductible in the prior tax yr.
So, if you make a contribution to a traditional IRA before April fifteen, 2020, you should still exist able to deduct it on your 2019 tax render.
Annotation: This advantage only extends to traditional IRAs and not Roth IRAs. Contributions to traditional IRAs are revenue enhancement deductible while contributions to Roth IRAs are not.
The reason is that taxes are paid on a traditional IRA when y'all withdraw the coin from information technology in retirement, while retirement distributions from Roth IRAs are non taxable.
iii. Catch-up contributions
If you turned fifty years old before the end of 2019, yous may exist able to make an extra tax-deductible contribution to your traditional IRA. This is called a catch-up contribution and, every bit the name suggests, the purpose is to help older workers go caught upwardly on their retirement savings.
Taxpayers who are 50 and over can contribute an actress $ane,000 over and in a higher place the general IRA contribution of $6,000 for the 2019 tax year.
Federal Taxes Paid by Land – Full Listing
| Federal Taxes Paid by State – Full List | ||
|---|---|---|
| RANK | State | FEDERAL TAXES PAID (in thousands) |
| 1 | California | $234,499,671 |
| 2 | New York | $140,510,002 |
| 3 | Texas | $133,417,081 |
| four | Florida | $116,970,551 |
| v | Illinois | $67,180,388 |
| 6 | New Jersey | $62,812,657 |
| 7 | Pennsylvania | $59,450,829 |
| 8 | Massachusetts | $54,205,161 |
| 9 | Washington | $45,090,597 |
| 10 | Virginia | $44,245,528 |
| xi | Ohio | $43,285,472 |
| 12 | Georgia | $xl,049,369 |
| 13 | Michigan | $39,851,173 |
| 14 | North Carolina | $36,903,060 |
| 15 | Maryland | $32,941,814 |
| 16 | Colorado | $30,582,979 |
| 17 | Connecticut | $29,408,511 |
| 18 | Minnesota | $28,235,474 |
| 19 | Arizona | $25,594,939 |
| xx | Tennessee | $24,585,104 |
| 21 | Wisconsin | $23,716,643 |
| 22 | Indiana | $23,073,291 |
| 23 | Missouri | $21,868,389 |
| 24 | Oregon | $16,948,554 |
| 25 | South Carolina | $16,233,383 |
| 26 | Louisiana | $xiv,877,448 |
| 27 | Alabama | $14,449,033 |
| 28 | Nevada | $13,801,515 |
| 29 | Kentucky | $12,660,855 |
| thirty | Oklahoma | $12,017,677 |
| 31 | Iowa | $11,250,927 |
| 32 | Kansas | $11,102,469 |
| 33 | Utah | $10,945,810 |
| 34 | Arkansas | $8,910,920 |
| 35 | New Hampshire | $seven,889,841 |
| 36 | Nebraska | $vii,196,223 |
| 37 | Mississippi | $6,575,470 |
| 38 | Commune Of Columbia | $vi,050,149 |
| 39 | New Mexico | $5,769,528 |
| forty | Hawaii | $5,687,524 |
| 41 | Idaho | $5,273,653 |
| 42 | Rhode Island | $4,850,471 |
| 43 | Maine | $iv,580,809 |
| 44 | W Virginia | $4,467,261 |
| 45 | Delaware | $four,072,451 |
| 46 | Montana | $three,660,614 |
| 47 | Southward Dakota | $iii,476,938 |
| 48 | North Dakota | $3,372,448 |
| 49 | Alaska | $3,283,668 |
| 50 | Wyoming | $iii,084,085 |
| 51 | Vermont | $ii,473,785 |
Source: https://www.moneyrates.com/research-center/federal-income-taxes-by-state.htm
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