What Do the Richest 1% Really Pay in Taxes?

The wealthiest 1% of Americans may seem to have the best of everything financially – money they don’t have to work for earned as interest on investments, and comparatively low tax rates in proportion to what the average American pays. For example, a 2021 study by White House economists found that the top 400 wealthiest U.S. families paid just 8.2% in taxes between 2010 and 2018 because investments are taxed differently than wages.

Currently, the top federal income tax rate is 37% for 2022 returns; but throughout U.S. history, it’s been much higher. It peaked at 94% in 1944 and 1945, according to the Tax Policy Center, and the lowest it’s been in recent history was 28% under President Ronald Reagan. Whether the rich pay their fair share of taxes is still up for debate. GoBankingRates set out to find out what the richest 1% actually pay in taxes in every state.

Not surprisingly, GOBankingRates found that the tax burden on the top 1% varies greatly from state to state. However, there are only 13 states where the wealthy pay more than 25% in taxes, with New Jersey being the highest at 27.62%. Here are the average taxes paid and the average tax rate on the top 1% sourced from Internal Revenue Service (IRS) data.

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

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• Minimum income needed to be considered 1%: 444,471
• Average income of the 1%: $936,890
• Average tax paid: $232,313
• Average tax rate: 24.80%

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

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

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

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

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

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

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

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

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

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

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

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

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

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

• Minimum income needed to be considered 1%: $377,039
• Average income of the 1%: $2,245,174
• Average tax paid: $526,595
• Average tax rate: 23.45%

• Minimum income needed to be considered 1%: $430,621
• Average income of the 1%: $1,047,733
• Average tax paid: $246,673
• Average tax rate: 23.54%

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

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

• Minimum income needed to be considered 1%: $739,998
• Average income of the 1%: $2,539,953
• Average tax paid: $676,927
• Average tax rate: 26.65%

• Minimum income needed to be considered 1%: $435,053
• Average income of the 1%: $1,281,016
• Average tax paid: $311,992
• Average tax rate: 24.36%

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

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

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

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

• Minimum income needed to be considered 1%: 435,924
• Average income of the 1%: $1,147,617
• Average tax paid: $274,443
• Average tax rate: 23.91%

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

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

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

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

See: What Can I Write Off on My Taxes?

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

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

• Minimum income needed to be considered 1%: 493,941
• Average income of the 1%: $1,173,821
• Average tax paid: $293,174
• Average tax rate: 23.45%

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

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

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

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

• Minimum income needed to be considered 1%: $450,935
• Average income of the 1%: $1,187,791
• Average tax paid: $294,807
• Average tax rate: 24.82%

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

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

• Minimum income needed to be considered 1%: $449,871
• Average income of the 1%: $1,346,134
• Average tax paid: $337,828
• Average tax rate: 25.10%

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

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

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

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

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

• Minimum income needed to be considered 1%: $434,346
• Average income of the 1%: $1,203,326
• Average tax paid: $156,611
• Average tax rate: 23.47%

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

Methodology: In order to discover what the richest 1% pay in taxes in your state, GOBankingRates looked at the U.S. 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 Jan. 20, 2022.