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The top 5% pays lower state and local taxes than the bottom 80% in 45 states: Ratio of average state and local tax rate faced by bottom 80% relative to top 5%
| State | Tax ratio | Bottom 80% tax rate | Top 5% tax rate |
|---|---|---|---|
| Washington | 3.27 | 12.6% | 3.9% |
| South Dakota | 2.91 | 9.3% | 3.2% |
| Florida | 2.73 | 9.3% | 3.4% |
| Tennessee | 2.56 | 8.9% | 3.5% |
| Nevada | 2.54 | 8.1% | 3.2% |
| Texas | 2.51 | 10.6% | 4.2% |
| Wyoming | 2.46 | 7.8% | 3.2% |
| Alaska | 2.1 | 5.0% | 2.4% |
| New Hampshire | 2.02 | 7.6% | 3.8% |
| North Dakota | 1.93 | 8.6% | 4.5% |
| Alabama | 1.71 | 9.2% | 5.4% |
| Pennsylvania | 1.7 | 11.7% | 6.9% |
| Oklahoma | 1.66 | 11.2% | 6.8% |
| Arizona | 1.65 | 10.4% | 6.3% |
| Louisiana | 1.57 | 10.5% | 6.7% |
| Indiana | 1.57 | 11.2% | 7.1% |
| New Mexico | 1.53 | 10.3% | 6.7% |
| Mississippi | 1.53 | 10.1% | 6.6% |
| Illinois | 1.52 | 12.8% | 8.4% |
| Ohio | 1.49 | 11.1% | 7.4% |
| Arkansas | 1.43 | 10.8% | 7.5% |
| Hawaii | 1.4 | 12.6% | 9.0% |
| Michigan | 1.39 | 9.6% | 6.9% |
| Kentucky | 1.37 | 10.3% | 7.5% |
| Iowa | 1.37 | 11.0% | 8.0% |
| Massachusetts | 1.33 | 9.4% | 7.1% |
| Kansas | 1.33 | 10.6% | 8.0% |
| Colorado | 1.33 | 8.7% | 6.5% |
| North Carolina | 1.32 | 9.3% | 7.0% |
| Missouri | 1.32 | 9.2% | 7.0% |
| Georgia | 1.32 | 9.9% | 7.5% |
| Wisconsin | 1.27 | 10.3% | 8.1% |
| Connecticut | 1.26 | 11.2% | 8.9% |
| Virginia | 1.25 | 9.4% | 7.5% |
| Nebraska | 1.2 | 10.4% | 8.7% |
| West Virginia | 1.19 | 9.0% | 7.6% |
| South Carolina | 1.18 | 8.2% | 7.0% |
| Rhode Island | 1.18 | 10.1% | 8.5% |
| Utah | 1.16 | 8.1% | 7.0% |
| Idaho | 1.16 | 8.6% | 7.5% |
| Montana | 1.1 | 7.0% | 6.3% |
| Maryland | 1.09 | 10.2% | 9.3% |
| Oregon | 1.07 | 9.1% | 8.5% |
| New York | 1.05 | 12.0% | 11.5% |
| Maine | 1.01 | 9.1% | 9.0% |
| New Jersey | 0.98 | 9.5% | 9.7% |
| Minnesota | 0.97 | 9.4% | 9.8% |
| Washington D.C. | 0.94 | 8.8% | 9.4% |
| Vermont | 0.9 | 9.2% | 10.2% |
| Delaware | 0.88 | 5.6% | 6.4% |
| California | 0.84 | 9.3% | 11.1% |
Source: EPI analysis of Institute on Taxation and Economic Policy data
Data are for 2018. For the top 5 percent, we took the simple average of the average tax rate faced by the top 1 percent and the rate faced by households between the 96th and 99th percentiles. For the bottom 80 percent we calculated a simple average of tax rates for each of the bottom four-fifths of households from the ITEP data.
Source: EPI analysis of data from the Institute on Taxation and Economic Policy (ITEP 2018).
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