2022 Average Federal Income Taxes Paid by State (2024)

FAQs

2022 Average Federal Income Taxes Paid by State? ›

Texas pays an exorbitant $17B in excise taxes to the federal government – more than any other state by far and more than the income taxes on Texas's top 1% of earners.

Texas pays an exorbitant $17B in excise taxes to the federal government – more than any other state by far and more than the income taxes on Texas's top 1% of earners.

High-Income Taxpayers Paid the Majority of Federal Income Taxes. In 2021, the bottom half of taxpayers earned 10.4 percent of total AGI and paid 2.3 percent of all federal individual income taxes. The top 1 percent earned 26.3 percent of total AGI and paid 45.8 percent of all federal income taxes.

Residents in Connecticut, Massachusetts, New Jersey and New York have some of the highest tax bills in the nation. They also pay thousands more in federal taxes than their state receives back in federal funding.

If your personal or financial circ*mstances have changed, you may end up owing taxes to the IRS when you usually get a refund. Common reasons include underpaying quarterly taxes if you're self-employed or not updating your withholding as a W-2 employee.

The state of Florida has one of the lowest tax burdens in the country, with no state income tax. While the state collectively paid in $252 billion between businesses and individual taxpayers, Florida also received $37.7 billion from federal funding for the coming fiscal year, according to state budget starting in July.

According to the updated MoneyGeek analysis, the most “tax friendly” state overall was Nevada, where the median family owes about 3% of its income in taxes. Meanwhile, 13 states earned either a D or F grade for tax burdens. For some of those states, like Oregon, high personal income tax rates are to blame.

Federal dollars account for one-third of the Texas state budget. Federal expenditures in Texas are one and a half times as much as what our state and local government revenues pay for, combined. Federal dollars account for one-third of the Texas state budget and one-tenth of preK-12 investments.

How much does the average person pay into Social Security over a lifetime? ›

For a single male earning an average wage every year and who retired in 2020 at age 65, lifetime Social Security and Medicare benefits would equal about $640,000, while total taxes paid would be just shy of $470,000.

Tax Shares in Tax Year 2021

The newly released report covers Tax Year 2021 (for tax forms filed in 2022). The newest data reveals that the top 1 percent of earners, defined as those with incomes over $682,577, paid nearly 46 percent of all income taxes – marking the highest level in the available data.

The top 1 percent of taxpayers (AGI of $546,434 and above) paid the highest effective income tax rate of 25.6 percent—more than seven times the rate faced by the bottom 50 percent of taxpayers.

According to a 2021 White House study, the wealthiest 400 billionaire families in the U.S. paid an average federal individual tax rate of just 8.2 percent. For comparison, the average American taxpayer in the same year paid 13 percent.

Some Americans might be exempt from filing income taxes because they don't meet the income requirements to file, or they're being claimed as a dependent.

The majority of federal revenue comes from individual and corporate income taxes as well as social insurance taxes (such as the Social Security taxes described above).

Your federal income tax withholdings are based on your income and filing status. For 2022, the federal income tax brackets are 10%, 12%, 22%, 24%, 32%, 35%, and 37%. Regardless of your situation, you'll need to complete a W-4 and submit it to your employer.

Different income tax brackets apply depending on how much money you make. Generally speaking, a higher percentage is typically taken out of your paycheck if you earn a higher level of income.