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How Much the Top 1% Pay in Taxes in the Poorest States

April 12, 2025

4 min Read

Written by GOBankingRates Staff

Edited by Chris Cluff

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Even the poorer states in America have rich people. And, like everyone else, those rich people also have to pay taxes. GOBankingRates recently conducted a study to see what the top 1% pay in taxes.

Here is what the top 1% in the poorest states pay in aggregate.

Also see what a $100,000 salary looks like after taxes in the poorest states.

Mississippi

% of population below poverty level: 19.1%
Total income tax share for the top 1%: 38.3%
Average tax rate percentage for the top 1%: 24.4%
Total income tax for the top 1%: $3,297,109,000
Number of returns for the top 1%: 11,731

Louisiana

% of population below poverty level: 18.9%
Total income tax share for the top 1%: 38.7%
Average tax rate percentage for the top 1%: 26%
Total income tax for the top 1%: $6,806,423,000
Number of returns for the top 1%: 18,593

New Mexico

% of population below poverty level: 18.1%
Total income tax share for the top 1%: 32.3%
Average tax rate percentage for the top 1%: 24.3%
Total income tax for the top 1%: $2,380,544,000
Number of returns for the top 1%: 9,310

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West Virginia

% of population below poverty level: 16.6%
Total income tax share for the top 1%: 30.3%
Average tax rate percentage for the top 1%: 24.8%
Total income tax for the top 1%: $1,647,747,000
Number of returns for the top 1%: 7,316

Kentucky

% of population below poverty level: 16.1%
Total income tax share for the top 1%: 34.3%
Average tax rate percentage for the top 1%: 24.7%
Total income tax for the top 1%: $5,451,182,000
Number of returns for the top 1%: 18,395

Arkansas

% of population below poverty level: 16.0%
Total income tax share for the top 1%: 42.2%
Average tax rate percentage for the top 1%: 23.2%
Total income tax for the top 1%: $4,814,153,000
Number of returns for the top 1%: 12,198

Alabama

% of population below poverty level: 15.6%
Total income tax share for the top 1%: 36.2%
Average tax rate percentage for the top 1%: 23.9%
Total income tax for the top 1%: $6,778,809,000
Number of returns for the top 1%: 20,185

Oklahoma

% of population below poverty level: 15.3%
Total income tax share for the top 1%: 37.8%
Average tax rate percentage for the top 1%: 24.6%
Total income tax for the top 1%: $5,622,529,000
Number of returns for the top 1%: 16,106

South Carolina

% of population below poverty level: 14.2%
Total income tax share for the top 1%: 37.1%
Average tax rate percentage for the top 1%: 25.4%
Total income tax for the top 1%: $8,867,845,000
Number of returns for the top 1%: 23,203

Tennessee

% of population below poverty level: 13.8%
Total income tax share for the top 1%: 41%
Average tax rate percentage for the top 1%: 25.8%
Total income tax for the top 1%: $14,547,566,000
Number of returns for the top 1%: 30,531

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Texas

% of population below poverty level: 13.8%
Total income tax share for the top 1%: 44.5%
Average tax rate percentage for the top 1%: 26.7%
Total income tax for the top 1%: $81,990,700,000
Number of returns for the top 1%: 128,130

Georgia

% of population below poverty level: 13.5%
Total income tax share for the top 1%: 38.3%
Average tax rate percentage for the top 1%: 25.8%
Total income tax for the top 1%: $21,001,340,000
Number of returns for the top 1%: 46,220

Ohio

% of population below poverty level: 13.2%
Total income tax share for the top 1%: 34.6%
Average tax rate percentage for the top 1%: 25.5%
Total income tax for the top 1%: $18,842,538,000
Number of returns for the top 1%: 53,103

North Carolina

% of population below poverty level: 13.2%
Total income tax share for the top 1%: 35.3%
Average tax rate percentage for the top 1%: 25.7%
Total income tax for the top 1%: $19,037,365,000
Number of returns for the top 1%: 46,525

Michigan

% of population below poverty level: 13.1%
Total income tax share for the top 1%: 35%
Average tax rate percentage for the top 1%: 24.5%
Total income tax for the top 1%: $16,650,121,000
Number of returns for the top 1%: 45,218

Methodology: For this study, GOBankingRates analyzed individual tax returns by state to find out how much the top 1% pay in taxes. Using data from the IRS SOI tax stats, the individual tax rates by income percentiles and by state were included. The states were sorted to show the highest to lowest tax share percentage. All data was collected on and is up to date as of March 6, 2025.

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