It’s no secret that top earners pay the highest tax rates across the country.
In fact, according to a new study by Smartasset.com, the upper class pays about 45% of their total income taxes to the IRS.
In the report, the personal financial technology company determines how much tax the top 1% pays in each state by examining the most recent IRS tax return data to determine the nominal amount and the relative amount compared to the rest of the taxpayers.
New Jersey earned two of the three major results. Below are the results of the Garden State’s top earners in the two categories.
New Jersey ranks third on the list of highest effective tax rates for the top 1% of income earners.
- Average effective tax rate for 1% earners: 27.20%
- Total income tax paid by the top 1%: $30,615,181
- Number of top 1% returns: 42,437
- Total income tax share of 1%: 37.7%
- Average effective tax rate for all taxpayers: 16.1%
New Jersey ranks eighth in gross income tax amount of the top 1% of earners.
- Total income tax paid by the top 1%: $30,615,181
- Number of top 1% returns: 42,437
- Average effective tax rate for 1% earners: 27.2%
- Total income tax share of 1%: 37.7%
- Average effective tax rate for all taxpayers: 16.1%
Top 10 states with the highest tax payments of the top 1%
- California
- new York
- Florida
- Texas
- Illinois
- Massachusetts
- Pennsylvania
- New Jersey
- Washington
- Georgia
Top 10 states with the highest effective tax rates for the top 1% of earners
- Connecticut
- new York
- New Jersey
- California
- New Hampshire
- Massachusetts
- Delaware
- Texas
- Illinois
- Virginia
