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Business Insider·4 min read·medium

States ranked by how much of their federal income tax is paid by the top 1%

States ranked by how much of their federal income tax is paid by the top 1%
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A SmartAsset study analyzed IRS data to rank US states by the percentage of federal income tax paid by the top 1% of earners. The report highlights the significant role high-income households play in funding federal government operations.

Why it matters

The data informs ongoing national debates regarding tax policy, wealth inequality, and the fiscal responsibility of the wealthiest citizens.

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Florida ranked second-highest in the SmartAsset study. Kruck20/Getty Images Tax proposals in New York and California aim to increase taxes on the wealthiest residents. A SmartAsset study calculated how much of each state's federal income taxes was paid by the top 1%. The top 1% of earners make 19% of incomes in the US but pay 37% of all federal income taxes. Tax proposals targeting wealthy residents have renewed debate in states including New York and California about how much the rich should be paying in taxes. But just how much do the top 1% already pay? While state and local taxes vary widely across states, from high-tax states like California to no-state-income-tax states like Florida and Nevada, federal income tax rates are the same across all US states.

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