Study Shows Wide Gaps in Federal Tax Contributions by Top 1% Across States
A SmartAsset analysis of IRS data reveals how much of each state's federal income tax is paid by its wealthiest 1% of households.
SmartAsset examined IRS personal income tax filings for 2022 to rank all 50 states by the percentage of federal income tax paid by the top 1% of earners. Nationally, the richest 1% earn about 19.5% of total income but shoulder 37% of federal individual taxes. State-by-state shares range from 26.37% in Alaska to 54.67% in Wyoming, with Florida (53.62%), Nevada (51.12%) and New York (46.26%) among the highest.
The analysis also provides the total tax paid, the count of top-1% households and their average adjusted gross income for each state, highlighting stark regional differences despite uniform federal rates. These figures inform ongoing debates in high-tax states like California and New York about further taxing wealthy residents.
Why it matters
It shows how much the richest households already fund federal revenue, shaping tax policy debates.
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