Here’s How Much the Average American Will Pay in Taxes on These 4 Key Things
Written by
T. Woods
Edited by
Zuri Anderson
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It seems nearly impossible to consume any form of national news in 2025 without encountering some mention of President Donald Trump’s tariffs — that is, taxes levied against foreign imports.
President Trump and his administration argue that tariffs will generate economic growth and income, while is critics maintain that tariffs will drastically increase prices of goods throughout the country. Despite criticisms, the businessman-turned-politician maintains that tariffs will not only drive the economy, they’ll generate enough revenue to replace the federal income tax.
GOBankingRates looked to research to see how much the average American will pay in taxes on several things if Trump’s tariffs are implemented.
How Much Will Americans Pay in Taxes on Certain Things Amid Tariffs?
As reported in Dancing Numbers, a recent AP-NORC poll indicates that 60% of Americans believe the federal income tax is unfair, with 59% feeling the same way about local property taxes. Furthermore, a whopping 66% lack confidence in how the federal government spends their tax dollars.
In response to this disenchantment, President Trump has routinely floated the idea of doing away with federal income taxes and replacing that revenue stream with that of his tariffs.
It’s a rather risky gamble, Trump’s tariff plan; however, if successful, here’s how much the average American would pay — and perhaps most importantly, no pay — on four key things, according to the study:
- Car Taxes: $5,843. The average American pays $5,843 in car taxes in their lifetime, and would continue to do so even if Trump’s tariffs are successful.
- Property Taxes: $132,081. The average American pays $132,081 in property taxes in their lifetime, and would continue to do so even if Trump’s tariffs are successful.
- Federal Income Taxes: $0. The average American pays $134,809 in federal income taxes in their lifetime. If replaced by tariffs, Americans wouldn’t pay a dime in federal income tax.
- Total Income Tax (Wage-Based): $0. The average American pays $327,106 in waged-based income taxes in their lifetime, a total what would be completely replaced by tariffs if they were successful.
Overall, Americans could skip out on paying a combined $461,915 over the course of their lifetimes if tariffs successfully replaced federal tax revenues.
Editor’s note on political coverage: GOBankingRates is nonpartisan and strives to cover all aspects of the economy objectively and present balanced reports on politically focused finance stories. You can find more coverage of this topic on GOBankingRates.com.
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