How Much the Top 5% Pay in Taxes in Every State
View original at finance.yahoo.comHow Much the Top 5% Pay in Taxes in Every State The percentage of income America’s top earners get to keep varies dramatically depending on which state they call home…
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South Dakota provides the most tax-friendly environment for the top 5%, with burdens of only 31.3% (single) and 23.6% (married).
80% confidenceAcross all states, the average tax burden for a single filer is approximately 36.1%, while the burden for a married couple is 28.8%, representing a savings of over 7% of total income.
80% confidenceThere are nine states with no state income tax: Alaska, Florida, Nevada, New Hampshire, South Dakota, Tennessee, Texas, Washington and Wyoming.
80% confidenceConnecticut has the highest average top 5% income at $691,840, while Mississippi has the lowest at $350,029, a difference of over $300,000.
80% confidenceIn states with no state income tax, the total tax burden for the top 5% is driven almost entirely by federal and FICA taxes, consistently keeping their total burden below the national average.
80% confidenceHigh earners in California face the nation's heaviest tax burden, losing 42.8% of their income if filing single and 35.8% if married.
80% confidenceThe combined weight of federal, state and FICA taxes can consume nearly half of a paycheck in some areas while leaving significantly more on the table in others.
80% confidence