The top 1% of American income households earn an average of 19.5% of all income but pay 37% of total income taxes, according to an analysis of new Internal Revenue Service data by SmartAsset.
These taxpayers contribute the largest amount of funding for infrastructure, health care, welfare programs and more, despite advantages that may enable them to minimize their taxes through professionally guided strategies or tax-friendlier locations.
SmartAsset analysts examined IRS data from 2022, the most recent available, to determine where the top 1% of earners contribute the most and least in taxes. They also evaluated total income taxes collected from this group, as well as their average adjusted gross income.
ThinkAdvisor went a step further, and calculated the effective tax rate the top 1% pay in each state, and ranked the states from the highest rate to the lowest.
Nationally, the top 1% paid federal income taxes at an average rate of 26%, compared with 14.5% for all taxpayers, according to the Tax Foundation. The top 10% paid 23.1% on average, while the bottom 50% of earners paid 3.7%.
See the gallery for the 12 states where the top 1% of earners paid the highest effective federal income tax rates.
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