The majority of taxpayers in America think they pay too much in taxes while receiving little in return for the expense, according to a January UChicago Harris/AP-NORC Poll.
Taxes cover anything from roads to law enforcement to schools to public libraries.
Iowa held a $1.83 billion surplus, with $2.74 billion in the Taxpayer Relief Fund, when the fiscal year ended on June 30, 2023. Income taxes, which are due April 15 for federal taxes and April 30 for state taxes, make up just a portion of Iowans' overall tax liability. How does the state's tax burden stack up?
Self, a credit company, conducted a study to determine how much the average American pays in taxes over their lifetime. The study evaluated the average earnings, personal spending, property and car taxes for all 50 states and the District of Columbia.
What state pays the most in taxes over a lifetime?
New Jersey took first place with the average resident paying $987,117 in taxes over their lifetime, according to Self. This is about $100,000 more than Washington D.C., which placed second. West Virginia averaged the least amount of taxes collected over a lifetime for the average resident totaling $358,407.
How much do Iowans spend in taxes over a lifetime?
The average Iowan pays over half of a million dollars in taxes over their lifetime, totaling $524,580, according to Self. Placing in the middle of the pack, Iowa ranks 22nd for the amount of taxes paid before death.
The average American will pay $524,625 in taxes for their life. States like Oregon, Hawaii and Delaware are just a few of the states that pay less in taxes over a lifetime than Iowa.
How much money do Iowans spend on taxes for their cars?
A 5% motor vehicle tax is taken on the purchase of new cars for registration, according to the Iowa Department of Revenue. Annual registration fees start at 1% of a vehicle's list price plus a fee based on its weight. Iowans spend $46,629 of that half million on auto taxes, according to Self.
The state ranks 18th out of the 51 states for vehicle taxes. The residents of Mississippi pay the most in taxes for their vehicles, totaling $87,488. Meanwhile, states like Alaska, Delaware and Oregon do not charge a sales tax on car purchases, according to Self.
How much do Iowans pay in property taxes over a lifetime?
For total spending on property taxes, Iowa ranks 23rd. The average Iowan will dish out $146,000 in property taxes over their lifetime to the state.
Iowans living in wealthy areas of the state tend to pay lower property tax rates than residents in lower-income areas, according to a report by auditor Rob Sand. Cities including Des Moines, Cedar Rapids, Iowa City, Davenport, Clinton and Council Bluffs have some of the highest property tax rates, while the northwest corner of Iowa has some of the lowest rates.
Iowa ranks 42nd among all 50 states and the District of Columbia for the highest property tax rates in the country.
More:Iowans pay some of the highest property taxes. What to know as tax bills are due.
How much do Iowans pay in income taxes over their lifetime?
The average Iowan pays $279,648 toward income taxes, placing Iowa in 17th place among the 51 states and the District of Columbia, according to Self. The state of Iowa is lowering the tax rate after the legislature passed a law to drop it to a flat tax of 3.9% by 2026. Additional tax cuts are being considered this legislative session.
Iowa imposes a sales tax and a use tax. The statewide rate is 6% with an additional 1% local option tax included in most areas, according to the Iowa Department of Revenue.
Iowa ranks 30th for highest spending on sales tax. The average Iowan pays $51,403 in personal spending taxes over the course of their life, according to Self. Meanwhile, the average person in Washington state pays the most in sales tax, totaling $83,014, according to Self.
Kate Kealey is a general assignment reporter for the Register. Reach her atkkealey@registermedia.comor follow her on Twitter at @Kkealey17.
