What the Richest 1% Pay in Taxes in Your State

Do the wealthy get away with not paying their fair share of taxes? Sens. Bernie Sanders and Elizabeth Warren have both proposed a wealth tax on the ultra-rich. Even multi-billionaire Warren Buffett has said that wealthy Americans such as himself should be taxed at a higher rate.

Know Now: What Are the 2020-2021 Federal Tax Brackets and Tax Rates?

Currently, the top federal income tax rate is 37% for 2020 returns. It applies to incomes of $510,301 and higher for single taxpayers and $612,351 and higher for couples filing jointly. But the top marginal tax rate has been much higher throughout U.S. history. It peaked at 94% in 1944 and 1945, according to the Tax Policy Center. The lowest it has been in recent history was 28% in the late 1980s under former President Ronald Reagan.

Read: Americans’ Savings Drop to Lowest Point in Years

So, the wealthy have been taxed more in the past, but they’ve also been taxed less than they are now. Whether the rich pay their fair share of taxes is still up for debate, but they do pay a disproportionate share of taxes in the U.S. The top 1% of taxpayers — those who earn $515,371 or more — paid 38.47% of the total tax revenue collected in 2017, according to the latest figures from the IRS. That’s actually a greater share than what the bottom 90% of taxpayers paid in total, at 29.92%.

Click through to see what the richest 1% pay in taxes in every state. 

Last updated: March 1, 2021

50. Alabama

• Minimum income to be considered 1%: $394,842
• Average income of the 1%: $999,352
• Average income tax paid by the 1%: $233, 478
• Average tax rate of the 1%: 23.36%

Read More: Being Rich vs. Being Wealthy: Learn Which One Can Land You in the Poor House

49. Alaska

• Minimum income to be considered 1%: $444,471
• Average income of the 1%: $936,890
• Average income tax paid by the 1%: $232,313
• Average tax rate of the 1%: 24.8%

Find Out: All the New Numbers You Need To Know for Planning Ahead on Taxes

48. Arizona

• Minimum income to be considered 1%: $459,757
• Average income of the 1%: $1,268,048
• Average income tax paid by the 1%: $307,566
• Average tax rate of the 1%: 24.26%

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47. Arkansas

• Minimum income to be considered 1%: $375,940
• Average income of the 1%: $1,378,629
• Average income tax paid by the 1%: $293,227
• Average tax rate of the 1%: 21.27%

Stay Safe: How To Protect Your Tax Refund From Being Stolen

46. California

• Minimum income to be considered 1%: $680,687
• Average income of the 1%: $2,238,758
• Average income tax paid by the 1%: $590,476
• Average tax rate of the 1%: 26.38%

See: What Is a Tax Deduction and How Do Tax Deductions Work?

45. Colorado

• Minimum income to be considered 1%: $577,452
• Average income of the 1%: $1,645,616
• Average income tax paid by the 1%: $409,526
• Average tax rate of the 1%: 24.89%

44. Connecticut

• Minimum income to be considered 1%: $818,755
• Average income of the 1%: $2,840,261
• Average income tax paid by the 1%: $783,687
• Average tax rate of the 1%: 27.59%

43. Delaware

• Minimum income to be considered 1%: $438,810
• Average income of the 1%: $1,095,713
• Average income tax paid by the 1%: $262,817
• Average tax rate of the 1%: 23.99%

42. Florida

• Minimum income to be considered 1%: $569,651
• Average income of the 1%: $2,190,557
• Average income tax paid by the 1%: $551,947
• Average tax rate of the 1%: 25.20%

41. Georgia

• Minimum income to be considered 1%: $496,599
• Average income of the 1%: $1,386,410
• Average income tax paid by the 1%: $327,111
• Average tax rate of the 1%: 23.59%

40. Hawaii

• Minimum income to be considered 1%: $414,150
• Average income of the 1%: $929,822
• Average income tax paid by the 1%: $221,138
• Average tax rate of the 1%: 23.78%

Find Out: How Much You Need To Be in the Top 5% in Every State

39. Idaho

• Minimum income to be considered 1%: $422,261
• Average income of the 1%: $1,138,855
• Average income tax paid by the 1%: $256,089
• Average tax rate of the 1%: 22.49%

38. Illinois

• Minimum income to be considered 1%: $572,933
• Average income of the 1%: $1,842,478
• Average income tax paid by the 1%: $480,696
• Average tax rate of the 1%: 26.09%

37. Indiana

• Minimum income to be considered 1%: $399,625
• Average income of the 1%: $1,017,307
• Average income tax paid by the 1%: $243,425
• Average tax rate of the 1%: 23.93%

36. Iowa

• Minimum income to be considered 1%: $402,964
• Average income of the 1%: $998,306
• Average income tax paid by the 1%: $239,065
• Average tax rate of the 1%: 23.95%

35. Kansas

• Minimum income to be considered 1%: $457,566
• Average income of the 1%: $1,314,656
• Average income tax paid by the 1%: $323,706
• Average tax rate of the 1%: 24.62%

34. Kentucky

• Minimum income to be considered 1%: $377,039
• Average income of the 1%: $1,047,733
• Average income tax paid by the 1%: $246,673
• Average tax rate of the 1%: 23.54%

33. Louisiana

• Minimum income to be considered 1%: $430,621
• Average income of the 1%: $1,095,274
• Average income tax paid by the 1%: $270,487
• Average tax rate of the 1%: 24.7%

32. Maine

• Minimum income to be considered 1%: $396,647
• Average income of the 1%: $870,414
• Average income tax paid by the 1%: $200,036
• Average tax rate of the 1%: 22.98%

31. Maryland

• Minimum income to be considered 1%: $537,046
• Average income of the 1%: $1,368,091
• Average income tax paid by the 1%: $352,226
• Average tax rate of the 1%: 25.75%

30. Massachusetts

• Minimum income to be considered 1%: $739,998
• Average income of the 1%: $1,281,016
• Average income tax paid by the 1%: $311,992
• Average tax rate of the 1%: 24.36%

29. Michigan

• Minimum income to be considered 1%: $435,053
• Average income of the 1%: $1,047,733
• Average income tax paid by the 1%: $246,673
• Average tax rate of the 1%: 23.54%

28. Minnesota

• Minimum income to be considered 1%: $524,940
• Average income of the 1%: $1,405,745
• Average income tax paid by the 1%: $357,864
• Average tax rate of the 1%: 25.46%

Check Out: 18 Medical Expenses You Can Deduct From Your Taxes

27. Mississippi

• Minimum income to be considered 1%: $330,119
• Average income of the 1%: $759,755
• Average income tax paid by the 1%: $172,237
• Average tax rate of the 1%: 22.67%

26. Missouri

• Minimum income to be considered 1%: $429,501
• Average income of the 1%: $1,264,240
• Average income tax paid by the 1%: $310,766
• Average tax rate of the 1%: 24.58%

25. Montana

• Minimum income to be considered 1%: $425,321
• Average income of the 1%: $1,078,275
• Average income tax paid by the 1%: $249,643
• Average tax rate of the 1%: 23.15%

24. Nebraska

• Minimum income to be considered 1%: $435,924
• Average income of the 1%: $1147,617
• Average income tax paid by the 1%: $274,443
• Average tax rate of the 1%: 23.91%

Find Out: What Can I Write Off on My Taxes?

23. Nevada

• Minimum income to be considered 1%: $493,199
• Average income of the 1%: $2,184,285
• Average income tax paid by the 1%: $530,767
• Average tax rate of the 1%: 24.30%

22. New Hampshire

• Minimum income to be considered 1%: $519,416
• Average income of the 1%: $1,460,801
• Average income tax paid by the 1%: $367,933
• Average tax rate of the 1%: 25.19%

21. New Jersey

• Minimum income to be considered 1%: $694,522
• Average income of the 1%: $1,855,914
• Average income tax paid by the 1%: $512,540
• Average tax rate of the 1%: 27.62%

20. New Mexico

• Minimum income to be considered 1%: $351,093
• Average income of the 1%: $837,388
• Average income tax paid by the 1%: $194,716
• Average tax rate of the 1%: 23.25%

19. New York

• Minimum income to be considered 1%: $709,741
• Average income of the 1%: $2,739,623
• Average income tax paid by the 1%: $742,236
• Average tax rate of the 1%: 27.09%

18. North Carolina

• Minimum income to be considered 1%: $462,850
• Average income of the 1%: $1,188,279
• Average income tax paid by the 1%: $295,203
• Average tax rate of the 1%: 24.84%

17. North Dakota

• Minimum income to be considered 1%: $493,941
• Average income of the 1%: $1,173,821
• Average income tax paid by the 1%: $293,174
• Average tax rate of the 1%: 24.98%

16. Ohio

• Minimum income to be considered 1%: $420,231
• Average income of the 1%: $1,100,839
• Average income tax paid by the 1%: $270,254
• Average tax rate of the 1%: 24.55%

Learn More: 5 Common Reasons You Might Owe Taxes This Year

15. Oklahoma

• Minimum income to be considered 1%: $428,617
• Average income of the 1%: $1,109,039
• Average income tax paid by the 1%: $262,110
• Average tax rate of the 1%: 23.63%

14. Oregon

• Minimum income to be considered 1%: $472,725
• Average income of the 1%: $1,193,735
• Average income tax paid by the 1%: $284,926
• Average tax rate of the 1%: 23.87%

13. Pennsylvania

• Minimum income to be considered 1%: $494,648
• Average income of the 1%: $1,372,479
• Average income tax paid by the 1%: $348,101
• Average tax rate of the 1%: 25.36%

12. Rhode Island

• Minimum income to be considered 1%: $450,935
• Average income of the 1%: $1,187,91
• Average income tax paid by the 1%: $294,807
• Average tax rate of the 1%: 24.82%

11. South Carolina

• Minimum income to be considered 1%: $423,744
• Average income of the 1%: $1,064,627
• Average income tax paid by the 1%: $253,460
• Average tax rate of the 1%: 23.81%

10. South Dakota

• Minimum income to be considered 1%: $460,683
• Average income of the 1%: $1,414,152
• Average income tax paid by the 1%: $334,709
• Average tax rate of the 1%: 23.67%

9. Tennessee

• Minimum income to be considered 1%: $449,871
• Average income of the 1%: $1,346,134
• Average income tax paid by the 1%: $337,828
• Average tax rate of the 1%: 25.1%

8. Texas

• Minimum income to be considered 1%: $542,780
• Average income of the 1%: $1,681,737
• Average income tax paid by the 1%: $435,431
• Average tax rate of the 1%: 25.89%

7. Utah

• Minimum income to be considered 1%: $483,006
• Average income of the 1%: $1,461,523
• Average income tax paid by the 1%: $347,432
• Average tax rate of the 1%: 23.77%

6. Vermont

• Minimum income to be considered 1%: $412,592
• Average income of the 1%: $1,002,454
• Average income tax paid by the 1%: $227,011
• Average tax rate of the 1%: 22.65%

5. Virginia

• Minimum income to be considered 1%: $534,077
• Average income of the 1%: $1,412,355
• Average income tax paid by the 1%: $364,251
• Average tax rate of the 1%: 25.79%

A Complete Guide: How To Fill Out a W-4

4. Washington

• Minimum income to be considered 1%: $625,720
• Average income of the 1%: $1,801,457
• Average income tax paid by the 1%: $455,240
• Average tax rate of the 1%: 25.27%

How To Avoid Paying Taxes Legally: The 11 Craziest Ways People Have Done It

3. West Virginia

• Minimum income to be considered 1%: $319,845
• Average income of the 1%: $667,368
• Average income tax paid by the 1%: $156,611
• Average tax rate of the 1%: 23.47%

2. Wyoming

• Minimum income to be considered 1%: $528,153
• Average income of the 1%: $2,245,174
• Average income tax paid by the 1%: $526,595
• Average tax rate of the 1%: 23.45%

1. Wisconsin

• Minimum income to be considered 1%: $434,346
• Average income of the 1%: $1,203,326
• Average income tax paid by the 1%: $297,267
• Average tax rate of the 1%: 24.70%

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Cameron Huddleston contributed to the reporting for this article. 

Methodology: In order to discover what the richest 1% pay in taxes in your state, GOBankingRates looked at the US Internal Revenue Service’s (IRS) Statistics of Income (SOI) division’s “Adjusted Gross Income (AGI) Percentile Data by State” data set or tax returns filed for 2018 (the latest data available). With this data GOBankingRates was able to find the following factors for each state: (1) minimum income needed to be considered 1% in your state; (2) average income of the 1%; (3) average income tax paid by the 1%; (4) average tax rate of the 1%. All data was collected on and up to date as of December 17, 2020.

About the Author

Jordan Rosenfeld

Jordan Rosenfeld is a freelance writer and author of nine books. She holds a B.A. from Sonoma State University and an MFA from Bennington College. Her articles and essays about finances and other topics has appeared in a wide range of publications and clients, including The Atlantic, The Billfold, Good Magazine, GoBanking Rates, Daily Worth, Quartz, Medical Economics, The New York Times, Ozy, Paypal, The Washington Post and for numerous business clients. As someone who had to learn many of her lessons about money the hard way, she enjoys writing about personal finance to empower and educate people on how to make the most of what they have and live a better quality of life.

 

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