Figure
State and local taxes tend to be higher at the bottom and lower at the top than federal taxes, weakening the equalizer effect of the tax system
| Percentile | State and local | Federal |
|---|---|---|
| Bottom 20% | 11.4% (State and local) | 0.9% (Federal) |
| 21–40th | 10.1% | 8.1% |
| Middle 20% | 9.9% | 13.3% |
| 61–80th | 9.5% | 17.5% |
| 81–95th | 8.9% | 22.3% |
| 96–99th | 8.0% | 26.7% |
| Top 1% | 7.4% | 33.3% |
Note: This tax rate is calculated by measuring how much in state and local taxes you pay as a share of your market income (earnings from work, capital gains, dividends, returns, from owning a business and rental income).
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