Just dug into some tax data and it's pretty eye-opening how unequally the burden falls. Turns out the top 1% doesn't pay the same percentage of taxes everywhere - it varies wildly by state, which I didn't expect.



Wyoming leads with the top 1% covering 54.7% of all federal income taxes in the state, though that's only about $2.5 billion total since the population is smaller. But when you look at absolute dollars, California's top 1% is paying $122 billion in taxes - more than any other state. Florida ($96B), Texas ($81B), and New York ($79B) follow close behind.

Here's what caught my attention: states like Wyoming, Florida, and Nevada have the highest percentage of taxes coming from their top earners - all above 50%. Meanwhile, Alaska sits at the bottom with just 26.4% of state taxes coming from the top 1%. That's a massive gap.

The average tax rate for top earners also differs - Connecticut's top 1% pays around 28.1% on average, while Wyoming's pays 23.1%. So even within the top 1%, what percentage of taxes they actually pay depends heavily on where they live.

I think what's interesting is how this shows wealth concentration in different regions. California, Florida, Texas, and New York have so many high earners that even though their percentage might be lower, the actual dollars collected are enormous. It's a reminder that 'percentage of taxes the top 1% pay' doesn't tell the whole story - you need to look at both the rate and the total numbers together.
This page may contain third-party content, which is provided for information purposes only (not representations/warranties) and should not be considered as an endorsement of its views by Gate, nor as financial or professional advice. See Disclaimer for details.
  • Reward
  • Comment
  • Repost
  • Share
Comment
Add a comment
Add a comment
No comments
  • Pin