Bernie Wants Billionaires To Pay — Will It Help or Hurt America’s Tax Debt Situation?

A new bill introduced by Democratic Sen. Bernie Sanders is targeting the ultra-rich. If passed, the Make Billionaires Pay Act would impose a 60% tax on the wealth that billionaires have accumulated since the pandemic broke out. In return, it would pay Americans' out-of-pocket healthcare costs for a whole year.

Sanders has been a long-time proponent of taxing Americans proportionate to their income. During his 2020 presidential campaign, he proposed an estate tax rate on the extremely wealthy of 77%, an increase from the 65% rate he called for during his 2016 presidential bid. And though many Americans will shout "Socialism!" at the senator's ideas, there is sound logic behind the "Tax the Rich" movement championed by Sanders and his colleagues. Put simply, billionaires can afford to pay a 70% tax rate without breaking a sweat. For those making, say, $30,000 a year, a 70% tax rate would be financially devastating.

And while billionaires may complain, wealthy Americans are the group that has the least amount of tax debt in the country. A survey by Solvable and GOBankingRates asked 21,404 Americans about their tax debt -- including how much tax debt they owed, their income bracket, age, gender, profession and state of residence. Survey findings showed that only 8% of Americans with tax debt make $125,000 or more -- the lowest percentage of any income bracket.

The IRS estimates that Americans owe a total of $441 billion in tax debt. Some places, like Alaska, New Hampshire and Washington, D.C., have higher debts than others. Find out how much the people in your state owe in taxes -- and if their income level could be part of the problem.

Last updated: Oct. 14, 2020

Alabama

• Tax debt (% of respondents):
  • Less than $7,499: 34%
  • $7,500-$9,999: 13%
  • $10,000-$19,999: 31%
  • $20,000-$49,999: 13%
  • $50,000-$99,999: 6%
  • $100,000 or more: 3%

In Alabama, the majority of those with tax debt make less than $40,000 annually, at 42%. Twenty-nine percent of respondents said that they make between $40,000 and $74,999, and 15% made between $75,000 and $99,999. Only 13% of people taking the survey make more than $100,000 per year.

Alaska

• Tax debt (% of respondents):
  • Less than $7,499: 23%
  • $7,500-$9,999: 23%
  • $10,000-$19,999: 27%
  • $20,000-$49,999: 18%
  • $50,000-$99,999: 0%
  • $100,000 or more: 9%

In Alaska, only 17% of survey respondents make above $100,000. Curiously, the remaining respondents are split evenly among income brackets -- 28% make less than $40,000, 28% make between $40,000 and $74,999 and 28% make between $75,000 and $99,999.

Arizona

• Tax debt (% of respondents):
  • Less than $7,499: 26%
  • $7,500-$9,999: 13%
  • $10,000-$19,999: 30%
  • $20,000-$49,999: 18%
  • $50,000-$99,999: 9%
  • $100,000 or more: 5%

Thirty-seven percent of Arizona residents with tax debt make $40,000-$74,999 a year. This means that middle-class Arizonians tend to be the ones who have trouble paying their taxes. In comparison, 32% make less than $40,000, and 15% make $100,000 or more.

Arkansas

• Tax debt (% of respondents):
  • Less than $7,499: 42%
  • $7,500-$9,999: 14%
  • $10,000-$19,999: 23%
  • $20,000-$49,999: 10%
  • $50,000-$99,999: 5%
  • $100,000 or more: 6%

The middle class in Arkansas also seems to struggle the most with tax debt, with 38% of respondents making between $40,000 and $74,999. Those with the lowest income are a close runner-up, at 34%. Higher-income households have significantly less debt, as only 7% of respondents in Arkansas make $125,000 or more.

California

• Tax debt (% of respondents):
  • Less than $7,499: 30%
  • $7,500-$9,999: 12%
  • $10,000-$19,999: 30%
  • $20,000-$49,999: 18%
  • $50,000-$99,999: 6%
  • $100,000 or more: 5%

Tax debt is slightly more spread out between income brackets in California. Thirty-two percent of respondents make $40,000-$74,999, 29% make $39,999 or less, 17% make $75,000-$99,999 and 22% fall into the highest two brackets, making $100,000 or more.

How Much Is Bernie Sanders Worth? A Look at the Finances of the Democratic Senator

Colorado

• Tax debt (% of respondents):
  • Less than $7,499: 34%
  • $7,500-$9,999: 12%
  • $10,000-$19,999: 27%
  • $20,000-$49,999: 16%
  • $50,000-$99,999: 7%
  • $100,000 or more: 4%

The Colorado residents dealing with the most tax debt make the lowest income, with a salary of less than $40,000. Twenty-seven percent of respondents make $40,000-$74,999, 19% make $75,000-$99,999 and 20% make $100,000 or more.

Connecticut

• Tax debt (% of respondents):
  • Less than $7,499: 37%
  • $7,500-$9,999: 8%
  • $10,000-$19,999: 23%
  • $20,000-$49,999: 18%
  • $50,000-$99,999: 7%
  • $100,000 or more: 7%

In Connecticut, there were more respondents in higher tax brackets than other states. In fact, 28% of respondents make $100,000 or more a year. Twenty-nine percent of respondents fall in the $40,000-$74,999 income range, 24% make less than $40,000 and 18% are in the middle income bracket ($75,000-$99,999).

Delaware

• Tax debt (% of respondents):
  • Less than $7,499: 33%
  • $7,500-$9,999: 11%
  • $10,000-$19,999: 30%
  • $20,000-$49,999: 16%
  • $50,000-$99,999: 5%
  • $100,000 or more: 5%

Lower- and middle-class respondents carry the majority of the tax debt burden in Delaware, with 31% and 32% of respondents from those income ranges, respectively. Seventeen percent make $74,999-$99,999 and 21% fall in the uppermost incomes, making $100,000 or more.

District of Columbia

• Tax debt (% of respondents):
  • Less than $7,499: 25%
  • $7,500-$9,999: 4%
  • $10,000-$19,999: 38%
  • $20,000-$49,999: 17%
  • $50,000-$99,999: 7%
  • $100,000 or more: 10%

A staggering 42% of respondents from the District of Columbia make less than $40,000 a year, meaning the lower class here is carrying the majority of the tax debt. Thirty-two percent make $40,000-$74,999 and 18% make $100,000 or more. Surprisingly, only 9% of respondents make $75,000-$99,999.

Florida

• Tax debt (% of respondents):
  • Less than $7,499: 33%
  • $7,500-$9,999: 10%
  • $10,000-$19,999: 28%
  • $20,000-$49,999: 17%
  • $50,000-$99,999: 6%
  • $100,000 or more: 6%

There are nearly the same amount of respondents from the $40,000-$74,999 and $39,999 and less income ranges, with 35% and 33%, respectively. Fourteen percent make $75,000-$99,000, 11% make $100,000-$124,999 and 7% make $125,000 or more.

Georgia

• Tax debt (% of respondents):
  • Less than $7,499: 33%
  • $7,500-$9,999: 13%
  • $10,000-$19,999: 29%
  • $20,000-$49,999: 17%
  • $50,000-$99,999: 5%
  • $100,000 or more: 4%

Georgians with the most tax debt seem to make the least money, with 37% of respondents in the $39,999 or less income range. Only 17% make $100,000-plus, whereas 34% fall into the middle class.

Hawaii

• Tax debt (% of respondents):
  • Less than $7,499: 28%
  • $7,500-$9,999: 8%
  • $10,000-$19,999: 30%
  • $20,000-$49,999: 18%
  • $50,000-$99,999: 11%
  • $100,000 or more: 6%

In Hawaii, the vast majority of those with tax debt -- nearly 40% -- make a middle-class income of $40,000-$74,999. In comparison, only 12% make less than $40,000. Twenty-five percent of respondents pull in $75,000-$99,999 and 24% make $100,000 or more.

Idaho

• Tax debt (% of respondents):
  • Less than $7,499: 39%
  • $7,500-$9,999: 14%
  • $10,000-$19,999: 23%
  • $20,000-$49,999: 16%
  • $50,000-$99,999: 6%
  • $100,000 or more: 3%

Unlike Hawaii, Idahoans making less than $40,000 are more likely to have tax debt, with 41% of respondents in this income range. Twenty-six percent make $40,000-$74,999, 14% make $75,000-$99,999, 13% make $100,000-$124,999 and just 6% make $125,000-plus.

Illinois

• Tax debt (% of respondents):
  • Less than $7,499: 39%
  • $7,500-$9,999: 9%
  • $10,000-$19,999: 25%
  • $20,000-$49,999: 16%
  • $50,000-$99,999: 5%
  • $100,000 or more: 6%

Thirty-five percent and 34% of respondents in Illinois fall into the lower income ranges, making less then $40,000 and $40,000-$74,999, respectively. Only 16% make more $100,000 or more and 15% make $75,000-$99,999.

Indiana

• Tax debt (% of respondents):
  • Less than $7,499: 45%
  • $7,500-$9,999: 13%
  • $10,000-$19,999: 23%
  • $20,000-$49,999: 12%
  • $50,000-$99,999: 3%
  • $100,000 or more: 4%

Indiana residents who are likeliest to have tax debt may also suffer from low wages. Of the survey respondents, 39% make less than $40,000. However, 36% make a middle-class income and 13% make $75,000-$99,999. Only 13% make $100,000 or more.

Iowa

• Tax debt (% of respondents):
  • Less than $7,499: 42%
  • $7,500-$9,999: 10%
  • $10,000-$19,999: 27%
  • $20,000-$49,999: 6%
  • $50,000-$99,999: 10%
  • $100,000 or more: 5%

In Iowa, 33% and 34% of respondents make less than $40,000 and $40,000-$74,999, respectively. Sixteen percent fall into the $75,000-$99,999 income range, and another 16% make $100,000 or more.

Kansas

• Tax debt (% of respondents):
  • Less than $7,499: 33%
  • $7,500-$9,999: 11%
  • $10,000-$19,999: 26%
  • $20,000-$49,999: 13%
  • $50,000-$99,999: 8%
  • $100,000 or more: 8%

The hardest hit in Kansas are those making $40,000-$74,999, with 38% of respondents in that income range holding some kind of tax debt. In comparison, only 6% of respondents make $100,000-$124,999. Thirty-five percent make less than $40,000, 11% make $75,000-$99,999 and 9% make $125,000 or more.

Kentucky

• Tax debt (% of respondents):
  • Less than $7,499: 45%
  • $7,500-$9,999: 11%
  • $10,000-$19,999: 21%
  • $20,000-$49,999: 10%
  • $50,000-$99,999: 9%
  • $100,000 or more: 4%

Kentucky, like most other states, seems to hold its tax debt burden within the lower and middle classes. Thirty-seven percent and 35% of respondents fall into the two lowest income ranges. In comparison, 11% make $75,000-$99,999, 9% make $100,000-$124,999 and 9% make $125,000 or more.

Louisiana

• Tax debt (% of respondents):
  • Less than $7,499: 33%
  • $7,500-$9,999: 14%
  • $10,000-$19,999: 29%
  • $20,000-$49,999: 15%
  • $50,000-$99,999: 3%
  • $100,000 or more: 5%

Louisiana's tax debt is largely tipped toward people who make less money. An amazing 44% of respondents with tax debt pocket less than $40,000 in a year; meaning they probably can't afford to resolve their dues to the IRS. No other income range comes close to this percentage, and a measly 6% of those surveyed make $125,000 or more.

Maine

• Tax debt (% of respondents):
  • Less than $7,499: 43%
  • $7,500-$9,999: 13%
  • $10,000-$19,999: 21%
  • $20,000-$49,999: 11%
  • $50,000-$99,999: 9%
  • $100,000 or more: 2%

The middle class is affected most by tax debt in Maine. Nearly 40% of respondents make between $40,000 and $74,999. However, a sizable 35% make less than $40,000, while only 11% make $100,000 or more.

Maryland

• Tax debt (% of respondents):
  • Less than $7,499: 29%
  • $7,500-$9,999: 14%
  • $10,000-$19,999: 28%
  • $20,000-$49,999: 18%
  • $50,000-$99,999: 6%
  • $100,000 or more: 5%

In Maryland, the tax debt burden is much more evenly spread. While the middle class shoulders most of it, 21% make less than $40,000, 18% make $75,000-$99,999, 16% make $100,000-$124,999 and 13% make $125,000-plus.

Massachusetts

• Tax debt (% of respondents):
  • Less than $7,499: 34%
  • $7,500-$9,999: 12%
  • $10,000-$19,999: 27%
  • $20,000-$49,999: 15%
  • $50,000-$99,999: 5%
  • $100,000 or more: 7%

Like Maryland, Massachusetts seems to divide its tax debt between residents of all incomes. The highest percentage of respondents -- 27% -- make $40,000-$74,999. Yet only 20% make less than $40,000, 18% make $75,000-$99,999, 17% make $100,000-$124,999 and an amazing 18% pull in incomes of $125,000-plus.

Michigan

• Tax debt (% of respondents):
  • Less than $7,499: 36%
  • $7,500-$9,999: 12%
  • $10,000-$19,999: 28%
  • $20,000-$49,999: 15%
  • $50,000-$99,999: 4%
  • $100,000 or more: 6%

In Michigan, 43% of those with tax debt fall into the "less than $40,000" income category. Twenty-nine percent make a middle-class income, and only 5% score $125,000 or more in a year.

Minnesota

• Tax debt (% of respondents):
  • Less than $7,499: 34%
  • $7,500-$9,999: 12%
  • $10,000-$19,999: 28%
  • $20,000-$49,999: 16%
  • $50,000-$99,999: 5%
  • $100,000 or more: 5%

Middle-class Minnesotans carry the biggest load here. Of the respondents, 34% make $40,000-$74,999, 26% make less than $40,000, 18% make $75,000-$99,999 and 22% count themselves lucky enough to make six figures.

Mississippi

• Tax debt (% of respondents):
  • Less than $7,499: 43%
  • $7,500-$9,999: 11%
  • $10,000-$19,999: 29%
  • $20,000-$49,999: 12%
  • $50,000-$99,999: 2%
  • $100,000 or more: 3%

No state is worse than Mississippi for the lower class as far as tax debt goes. An astounding 50% of people who owe money to the IRS make less than $40,000 a year. Twenty-seven percent make a more middle-class income, and 23% make $75,000 or more -- with most falling into the "or more" category.

Missouri

• Tax debt (% of respondents):
  • Less than $7,499: 39%
  • $7,500-$9,999: 10%
  • $10,000-$19,999: 28%
  • $20,000-$49,999: 13%
  • $50,000-$99,999: 3%
  • $100,000 or more: 6%

The lower class in Missouri also suffers with tax debt, with 39% of respondents reporting a $39,999 or less income. Thirty percent make $40,000-$74,999, 16% make $75,000-$99,999 and 15% pull down $100,000 or more.

Montana

• Tax debt (% of respondents):
  • Less than $7,499: 24%
  • $7,500-$9,999: 9%
  • $10,000-$19,999: 29%
  • $20,000-$49,999: 25%
  • $50,000-$99,999: 7%
  • $100,000 or more: 5%

In Montana, 44% of respondents with tax debt cited their income at under $40,000. That's a lot more than the 29% who make $40,000-$74,999 or the 13% in the $75,000-$99,999 income bracket. Only 14% manage a six-figure salary.

Take Action: 30 Ways To Dig Yourself Out of Debt

Nebraska

• Tax debt (% of respondents):
  • Less than $7,499: 41%
  • $7,500-$9,999: 11%
  • $10,000-$19,999: 25%
  • $20,000-$49,999: 14%
  • $50,000-$99,999: 2%
  • $100,000 or more: 7%

Nebraska is tied for the worst state for middle-class Americans in this survey. Over 40% of residents with tax debt make between $40,000 and $74,999. In comparison, 30% make less than $40,000, 15% make $75,000-$99,999 and 14% make $100,000 or more.

Nevada

• Tax debt (% of respondents):
  • Less than $7,499: 23%
  • $7,500-$9,999: 19%
  • $10,000-$19,999: 33%
  • $20,000-$49,999: 15%
  • $50,000-$99,999: 6%
  • $100,000 or more: 3%

Respondents from Nevada are concentrated mostly in the lower and middle classes, as 65% of them make less than $75,000. Eighteen percent pull in $75,000-$99,999 and 17% make $100,000-plus.

New Hampshire

• Tax debt (% of respondents):
  • Less than $7,499: 26%
  • $7,500-$9,999: 14%
  • $10,000-$19,999: 24%
  • $20,000-$49,999: 22%
  • $50,000-$99,999: 5%
  • $100,000 or more: 9%

New Hampshire, along with other states in the Northeast, has an unusually high amount of big-income residents with tax debt. Almost 20% of respondents cited an income of $125,000 or more. That's almost as many as the 21% and 25% who fall in the middle and lower classes.

New Jersey

• Tax debt (% of respondents):
  • Less than $7,499: 29%
  • $7,500-$9,999: 11%
  • $10,000-$19,999: 27%
  • $20,000-$49,999: 16%
  • $50,000-$99,999: 9%
  • $100,000 or more: 8%

Although 51% of New Jerseyans with tax debt make under $75,000, there are a surprising number with higher incomes. Seventeen percent make $75,000-$99,999, 18% make $100,000-$124,999 and 14% rake in $125,000-plus.

New Mexico

• Tax debt (% of respondents):
  • Less than $7,499: 36%
  • $7,500-$9,999: 12%
  • $10,000-$19,999: 27%
  • $20,000-$49,999: 15%
  • $50,000-$99,999: 5%
  • $100,000 or more: 6%

Thirty-eight percent of respondents in New Mexico make less than $40,000. In comparison, 30% make $40,000-$74,999, 14% make $75,000-$99,999 and 18% make a six-figure income.

New York

• Tax debt (% of respondents):
  • Less than $7,499: 31%
  • $7,500-$9,999: 12%
  • $10,000-$19,999: 30%
  • $20,000-$49,999: 16%
  • $50,000-$99,999: 5%
  • $100,000 or more: 6%

The majority -- 58% -- of New Yorkers with tax debt have an income less than $75,000. However, 14% make between $75,000 and $99,999, 16% make $100,000-$124,999 and 12% make $125,000 or more.

North Carolina

• Tax debt (% of respondents):
  • Less than $7,499: 34%
  • $7,500-$9,999: 11%
  • $10,000-$19,999: 30%
  • $20,000-$49,999: 16%
  • $50,000-$99,999: 5%
  • $100,000 or more: 3%

The tax debt burden in North Carolina rests somewhat evenly upon residents of both the lower and middle classes, at 38% and 34%, respectively. Fourteen percent make $75,000-$99,999 and another 14% pull over $100,000.

North Dakota

• Tax debt (% of respondents):
  • Less than $7,499: 40%
  • $7,500-$9,999: 10%
  • $10,000-$19,999: 23%
  • $20,000-$49,999: 10%
  • $50,000-$99,999: 10%
  • $100,000 or more: 7%

Interestingly, while 21% of North Dakotans with tax debt make less than $40,000, another 21% make $125,000-plus; meaning the reasons they're strapped with debt could be vastly different. In comparison, 33% make $40,000-$74,999, 21% make $75,000-$99,999 and just 4% make between $100,000 and $124,999.

Ohio

• Tax debt (% of respondents):
  • Less than $7,499: 37%
  • $7,500-$9,999: 12%
  • $10,000-$19,999: 29%
  • $20,000-$49,999: 14%
  • $50,000-$99,999: 6%
  • $100,000 or more: 3%

Over 70% of Ohio residents with tax debt make under $75,000, and only 4% make $125,000 or more. The numbers seem to be pretty clear that having a lower income increases the chance of accruing tax debt.

Oklahoma

• Tax debt (% of respondents):
  • Less than $7,499: 38%
  • $7,500-$9,999: 9%
  • $10,000-$19,999: 31%
  • $20,000-$49,999: 12%
  • $50,000-$99,999: 4%
  • $100,000 or more: 6%

The largest number of Oklahoma residents with tax debt -- 36% -- fall into the lowest income bracket. However, a sizable 32% make $40,000-$74,999, 15% make $75,000-$99,999 and 17% make six figures.

Oregon

• Tax debt (% of respondents):
  • Less than $7,499: 35%
  • $7,500-$9,999: 10%
  • $10,000-$19,999: 27%
  • $20,000-$49,999: 16%
  • $50,000-$99,999: 6%
  • $100,000 or more: 6%

Sixty-two percent of respondents in Oregon make a yearly income of less than $75,000. In comparison, 19% make $75,000-$99,999 and 21% make $100,000 or more.

Pennsylvania

• Tax debt (% of respondents):
  • Less than $7,499: 34%
  • $7,500-$9,999: 11%
  • $10,000-$19,999: 29%
  • $20,000-$49,999: 16%
  • $50,000-$99,999: 5%
  • $100,000 or more: 5%

Pennsylvania lower- and middle-class residents share the tax debt burden in this Eastern state. Each income range holds 35% of the respondents. Only 14% of respondents reported an income of $100,000 or more.

Billionaires vs. Middle-Class America: Who Pays More in Taxes? 

Rhode Island

• Tax debt (% of respondents):
  • Less than $7,499: 38%
  • $7,500-$9,999: 11%
  • $10,000-$19,999: 25%
  • $20,000-$49,999: 15%
  • $50,000-$99,999: 6%
  • $100,000 or more: 4%

With 39% of respondents making $40,000-$74,999, there seems to be a heavy tax debt burden on the middle class in Rhode Island. Comparatively, 36% make less than $40,000, 14% make $75,000-$99,999 and 12% make $100,000 and above.

South Carolina

• Tax debt (% of respondents):
  • Less than $7,499: 39%
  • $7,500-$9,999: 12%
  • $10,000-$19,999: 31%
  • $20,000-$49,999: 13%
  • $50,000-$99,999: 3%
  • $100,000 or more: 2%

In South Carolina, people who make under $40,000 made up a big part of this survey. Over 40% in tax debt came from that income range. On top of that, 35% make a middle-class income, whereas just 24% make $75,000 or more.

South Dakota

• Tax debt (% of respondents):
  • Less than $7,499: 39%
  • $7,500-$9,999: 18%
  • $10,000-$19,999: 18%
  • $20,000-$49,999: 15%
  • $50,000-$99,999: 3%
  • $100,000 or more: 6%

A high 38% of respondents in South Dakota make $40,000-$74,999, leaving the middle class bogged down with tax debt. Twenty-eight percent make under $40,000, 22% make $75,000-$99,999 and 12% make six figures.

Tennessee

• Tax debt (% of respondents):
  • Less than $7,499: 35%
  • $7,500-$9,999: 12%
  • $10,000-$19,999: 29%
  • $20,000-$49,999: 13%
  • $50,000-$99,999: 7%
  • $100,000 or more: 4%

Tennessee, like many of the other Southern states, is a bad place to make a lower income if you don't want tax debt. A staggering 43% of respondents reported incomes of less than $40,000. On the other side of the spectrum, only 4% reported incomes of $125,000 or more.

Texas

• Tax debt (% of respondents):
  • Less than $7,499: 32%
  • $7,500-$9,999: 13%
  • $10,000-$19,999: 27%
  • $20,000-$49,999: 16%
  • $50,000-$99,999: 6%
  • $100,000 or more: 6%

Tax debt in Texas seems to get worse the less money you make. Thirty-four percent of respondents cited making less than $40,000. Thirty percent make $40,000-$74,999, 16% make $75,000-$99,999, 12% make $100,000-$124,999 and 8% make $125,000-plus.

Utah

• Tax debt (% of respondents):
  • Less than $7,499: 31%
  • $7,500-$9,999: 14%
  • $10,000-$19,999: 30%
  • $20,000-$49,999: 18%
  • $50,000-$99,999: 3%
  • $100,000 or more: 3%

In Utah, tax debt resides heavily with those in the middle class, at 37%. Less than a quarter of respondents reported making under $40,000, and the same goes for those making $75,000-$99,999. Only 17% make a six-figure income.

Vermont

• Tax debt (% of respondents):
  • Less than $7,499: 38%
  • $7,500-$9,999: 10%
  • $10,000-$19,999: 38%
  • $20,000-$49,999: 10%
  • $50,000-$99,999: 3%
  • $100,000 or more: 0%

Vermont is the state best suited for low-income Americans, as far as tax debt goes. Only 8% of those in debt reported making less than $40,000. But this means the burden rests heavily on the middle class's shoulders, as 38% of respondents reported an income of $40,000-$74,999. Surprisingly, 46% of respondents said they make six figures -- which may leave some scratching their heads as to how they got that debt in the first place.

Virginia

• Tax debt (% of respondents):
  • Less than $7,499: 31%
  • $7,500-$9,999: 10%
  • $10,000-$19,999: 32%
  • $20,000-$49,999: 17%
  • $50,000-$99,999: 4%
  • $100,000 or more: 6%

Although 56% of Virginians in tax debt make less than $75,000, plenty of higher-income residents reported tax debt, too; this includes 18% who make $100,000-$124,999 and 15% who make $125,000 or more.

Washington

• Tax debt (% of respondents):
  • Less than $7,499: 33%
  • $7,500-$9,999: 11%
  • $10,000-$19,999: 26%
  • $20,000-$49,999: 16%
  • $50,000-$99,999: 6%
  • $100,000 or more: 9%

Washington's middle class sees the highest rates of tax debt, with nearly 4 out of 10 respondents citing their income between $40,000 and $74,999. Twenty-three percent said they make under $40,000, 17% make $75,000-$99,999 and 9% make $100,000-$124,999. A fairly high 13% of respondents reported a $125,000-plus yearly salary.

West Virginia

• Tax debt (% of respondents):
  • Less than $7,499: 38%
  • $7,500-$9,999: 10%
  • $10,000-$19,999: 31%
  • $20,000-$49,999: 14%
  • $50,000-$99,999: 2%
  • $100,000 or more: 6%

In West Virginia, low-income residents draw the short stick when it comes to tax debt, while those with high income are barely even touched. A 41% majority of respondents make less than $40,000 a year; 30% earn an income between $40,000 and $74,999. However, only 3% make $125,000 or more.

Wisconsin

• Tax debt (% of respondents):
  • Less than $7,499: 36%
  • $7,500-$9,999: 12%
  • $10,000-$19,999: 28%
  • $20,000-$49,999: 13%
  • $50,000-$99,999: 4%
  • $100,000 or more: 8%

About 38% of Wisconsin residents with tax debt also make under $40,000. Twenty-five percent reported a middle-class income, while 18% make $100,000 or more. Nineteen percent are in the middle -- pulling in $75,000-$99,999 per year.

Wyoming

• Tax debt (% of respondents):
  • Less than $7,499: 23%
  • $7,500-$9,999: 10%
  • $10,000-$19,999: 53%
  • $20,000-$49,999: 7%
  • $50,000-$99,999: 7%
  • $100,000 or more: 0%

Of the respondents in Wyoming, 71% make less than $75,000 a year, with 30% making less than $40,000. On the other end of the spectrum, there were 11% of respondents falling into both of these income brackets: $100,000-$124,999 and $125,000 or more. Only 7% of those with debt make $75,000-$99,999 annually.

Overall Results

Though GOBankingRates has highlighted the state-by-state results, there were many more interesting insights about tax debt across demographics. For instance, the majority of respondents in the survey were female. Maine, Vermont and Alaska, in particular, had about a 60-40 split between women and men. Further, across all states surveyed, the most popular occupations listed by those in debt were -- in descending order -- professional/technical roles, skilled trade/machine/laborer roles and nurses.

More than anything else, the survey showed that tax debt affects people of every age, gender, profession and income level. If you're struggling with tax debt, understanding how you got it may help you come up with an effective plan to resolve it -- whether that's through personal budgeting, a different job or a payment plan with the IRS.

You can read about the tax debt across ages, industries and more on Solvable, where the original report lives.

More From GOBankingRates

• 50 Easy Things You Should Do To Save Money
• The Downsides of Retirement That Nobody Talks About
• Tips To Keep Your Finances in Order Without Sacrificing What You Want
• 40 Money Habits That Can Leave You Broke

Methodology: This report was developed by Solvable in collaboration with GOBankingRates. The dataset comprised 21,404 unique cases of tax debt from Solvable. The tax debt cases reflect a date range from Jan. 1, 2019, through Jan. 31, 2020.

The total national tax debt figure of $441 billion is data provided by the IRS. There is no exact report on cumulative tax debt from state-based taxes. Solvable conservatively estimates that figure to be roughly around $146 billion. This estimate was found by extrapolating California’s reported 2018 tax gap figure that was between $20 billion-$25 billion to the rest of the U.S. Adding the estimated state-level tax gap to the net federal tax gap of $381 billion makes a total estimated tax gap of $527 billion.

About the Author

Levi Leidy

Levi joined GOBankingRates in 2019. He's found success in financial, political and military lifestyle writing, with work appearing on MSN, Yahoo Finance, OurMilitary.com and more. With a background in narrative writing, he enjoys turning interesting conversations into impactful content.

Read More