Key facts
- A SmartAsset study ranked all 50 states by the percentage of federal income tax paid by the top 1% of earners.
- The study used IRS data for tax year 2022, treating each return as one household.
- Nationally, the top 1% of earners accounted for 19.5% of income but paid 37% of federal individual income taxes.
- Alaska ranked last, with its top 1% paying 26.37% of the state's federal income tax.
- West Virginia, Oregon, Delaware, and Maryland followed, with their top 1% paying over 30% of their respective states' federal income taxes.
A recent SmartAsset study examined federal income tax contributions across U.S. states, revealing the significant share paid by the top 1% of earners. While state and local taxes vary, federal income tax rates are uniform nationwide. The study utilized IRS data from tax year 2022, treating each tax return as a household.
Nationally, the top 1% of earners, who made an average of 19.5% of all income, were responsible for 37% of all federal individual income taxes collected. This revenue is crucial for funding government programs, services, and interest on the national debt.
Alaska ranked lowest in the study, with its top 1% of households paying only 26.37% of the state's total federal income tax. This group earned an average of $1.25 million and contributed $1.02 billion.
Following Alaska, West Virginia's top 1% paid 30.28% of the state's federal income taxes, earning an average of $908,389 and contributing $1.65 billion. Oregon's top 1% paid 30.37%, with an average income of $1.43 million and contributing $6.77 billion. Delaware's top 1% paid 30.38%, averaging $1.36 million in income and contributing $1.65 billion. Maryland's top 1% paid 30.41% of the state's federal income tax.