Taxes are something people don’t enjoy paying, but it helps to keep things in perspective. With the exception of states with the the very highest rates, the difference in how much people pay in taxes isn’t that different from one state to the next.
Taxes in 2022: Find Out Everything You Need To Know About Filing, Refunds and More
Important: Major Tax Changes for 2022 You Need To Know
As one might expect, the highest tax in raw dollar figures is in Hawaii, where single filers pay an average of $24,582. Other high-tax states include coastal states such as Maryland and California, where single filers pay an average of $23,133 and $21,859, respectively.
However, looking at the dollar amounts doesn’t give us the whole story. Incomes vary widely around the country, meaning if someone pays more in taxes, it doesn’t necessarily mean taxes are eating up a greater percentage of their income.
For instance, single filers in Mississippi pay an average of $9,471, which is the lowest in the country. However, that is an effective tax rate of 20%. Meanwhile, single filers in Texas pay an average of $12,346, but that is an effective tax rate of 18.70% there.
That’s why it’s important to look at all of the data and not just how much you pay. The reality is that your tax rate may be lower than you think. Let’s take a closer look at all 50 states, keeping in mind you can find your tax rate by dividing income taxes paid by household income.
