This report delves into the federal income tax contributions of the highest-earning 1% of households across all US states, as analyzed by SmartAsset. It reveals the varying impact of this elite group on each state's total federal income tax revenue, providing a nuanced perspective on wealth distribution and tax burden.Unveiling the Economic Power of the Elite: A State-by-State Tax Contribution Analysis
The National Tax Landscape: Wealth, Contribution, and Debate
Discussions surrounding tax policies that target affluent citizens are gaining traction, particularly in states like New York and California. A key question driving these debates is the extent to which the wealthiest individuals already contribute to the tax system. Despite federal income tax rates being uniformly applied nationwide, the actual share paid by the top 1% of households exhibits considerable variation across states, influenced by state-specific tax structures and economic profiles.
Methodology: Quantifying the Top 1%'s Federal Tax Share
SmartAsset conducted a comprehensive study to assess the federal individual income tax contributions of residents in each state. The analysis specifically focused on determining the proportion of federal income tax paid by the top 1% of households. This involved utilizing the latest available personal income tax return data from the IRS for the 2022 tax year, with each tax return considered a single household unit.
Federal Revenue Pillars: Income Tax and Government Funding
Individual income taxes represent the primary source of revenue for the federal government. These funds are crucial for supporting various government programs, essential services, and managing the national debt. Understanding the distribution of this tax burden, particularly among different income brackets, offers insights into fiscal policy and economic equity.
Tax Brackets and the Top Earners' Burden
For the 2026 tax year, federal marginal income tax rates span from a low of 10% for single filers earning up to $12,400 (and married couples up to $24,800) to a high of 37% for single filers with taxable incomes exceeding $640,600 (and married couples exceeding $768,700). Nationally, the top 1% of earners, while accounting for an average of 19.5% of all income, collectively paid 37% of federal individual income taxes, according to the SmartAsset study.
State-by-State Breakdown: A Detailed Ranking of Top 1% Contributions
SmartAsset meticulously ranked all 50 states based on the percentage of federal income tax revenue generated by their top 1% of earners. This ranking, derived from the 2022 IRS data, offers a granular view of tax distribution and economic dynamics at the state level. The following sections present a detailed overview of each state's performance in this metric.
Alaska: The Lowest Contribution from the Top 1%
Alaska holds the distinction of having the lowest proportion of federal income taxes paid by its top 1%. Specifically, this group contributed 26.37% of the state's total income tax, amounting to $1.02 billion from 3,223 households. The average adjusted gross income for these top-tier households was $1.25 million.
West Virginia: A Modest Contribution Share
In West Virginia, the top 1% of households were responsible for 30.28% of the state's income tax, totaling $1.65 billion. This involved 7,316 households, each reporting an average adjusted gross income of $908,389.
Oregon: Over 30% from the Wealthiest
Oregon's top 1% of earners contributed a significant 30.37% of the state's total income tax, equivalent to $6.77 billion. This contribution came from 19,053 households, with an average adjusted gross income of $1.43 million.
Delaware: Similar Patterns of High-Earner Contributions
Delaware's wealthiest 1% paid over 30.38% of the state's income taxes, representing $1.65 billion. This group comprised 4,726 households, each with an average adjusted gross income of $1.36 million.
Maryland: Substantial Income Tax Payments from Top Earners
The top 1% in Maryland contributed $12.68 billion to income taxes, accounting for 30.45% of the state's total. This group included 29,040 households, with an average adjusted gross income of $1.65 million.
Maine: Top 1% Households with High Average Incomes
Maine's top 1% of households contributed 30.48% of the state's income taxes, amounting to $1.98 billion. These 6,618 households reported an average adjusted gross income of $1.23 million.
Vermont: Over 32% of Taxes from the Top 1%
Vermont's top 1% of earners, consisting of 3,123 households, paid 32.04% of the state's total income taxes, or $1.08 billion. Their average adjusted gross income was $1.39 million.
Washington: High Average Incomes, Significant Contributions
Washington's top 1% households, numbering 35,597, contributed 32.06% of the state's income taxes, totaling $20.01 billion. These households had a notably high average annual adjusted gross income of $2.19 million.
New Mexico: Over 32% of Income Taxes from Wealthiest Households
The top 1% in New Mexico, comprising 9,310 households, paid 32.3% of the state's income taxes, amounting to $2.38 billion. Their average adjusted gross income was $1.05 million.
Minnesota: A Third of Income Taxes from Top Earners
Minnesota's 26,423 top 1% households contributed 32.64% of the state's income taxes, or $11.52 billion. The average adjusted gross income for these households was $1.66 million.
Virginia: Significant Tax Payments from the Wealthiest
Virginia's top 1% households, numbering 39,103, paid $19.24 billion in income taxes, representing 32.94% of the state's total. Their average adjusted gross income was $1.9 million.
Iowa: A Third of Income Taxes from Elite Taxpayers
Iowa's top 1% included 13,821 tax returns, contributing 33.16% of the state's income tax total, or $4.81 billion. The average adjusted gross income for these households was $1.41 million.
Hawaii: Substantial Contributions from Top Households
Hawaii's 6,472 top 1% households paid 33.57% of the state's income taxes, totaling $2.46 billion. Their average adjusted gross income was $1.53 million.
Rhode Island: Over One-Third of Taxes from the Top 1%
The top 1% in Rhode Island, consisting of 5,224 households, contributed 33.58% of the state's total income taxes, or $2.15 billion. The average adjusted gross income for these households was $1.61 million.
New Jersey: Leading Contributions from High Earners
New Jersey's top 1% paid 33.78% of the state's income taxes, amounting to $26.9 billion. This group of 43,042 households had an average adjusted gross income of $2.28 million.
Kentucky: Wealthiest Households Contribute Over a Third
Kentucky's top 1% households, totaling 18,395, contributed 34.26% of the state's income taxes, or $5.45 billion. Their average adjusted gross income was $1.2 million.
North Dakota: Significant Share from Top Earners
The top 1% of households in North Dakota paid 34.41% of the state's income taxes, amounting to $1.52 billion. This group comprised 3,431 households, with an average adjusted gross income of $1.71 million.
Colorado: High-Income Households and Their Tax Burden
Colorado's top 1% of households contributed $14.89 billion in income taxes, accounting for 34.51% of the total. These 27,685 households had an average adjusted gross income of $2.07 million.
Ohio: Large Number of Top 1% Households
Ohio's top 1% included 53,103 households, which paid $18.84 billion in income taxes, representing 34.6% of the state's total. Their average adjusted gross income was $1.39 million.
Michigan: Nearly 35% from the Wealthiest
Michigan's top 1% contributed 35.01% of the state's income taxes, totaling $16.65 billion. This group comprised 45,218 households, with an average adjusted gross income of $1.5 million.
Pennsylvania: Over a Third of Taxes from Top Earners
In Pennsylvania, the top 1% paid 35.09% of the state's total income taxes, amounting to $26.13 billion. This included 58,541 households, with an average adjusted gross income of $1.73 million.
North Carolina: Substantial Contributions from Top Households
North Carolina's top 1% of households paid $19.04 billion in income taxes, accounting for 35.28% of the total. These 46,525 households had an average adjusted gross income of $1.59 million.
New Hampshire: High Average Incomes in the Top 1%
The average adjusted gross income among New Hampshire's top 1% households was $2.27 million, contributing 35.41% of the state's income taxes, or $3.95 billion, from 6,796 households.
Indiana: Significant Tax Share from Wealthy Residents
Indiana's 30,120 top 1% households paid $10.52 billion in income taxes, representing 35.52% of the total. Their average adjusted gross income was $1.39 million.
Wisconsin: Over a Third of Income Taxes from Elite Earners
Wisconsin's top 1% paid $11.02 billion in income taxes, accounting for 35.54% of the statewide total. This included 27,293 households, with an average adjusted gross income of $1.57 million.
Kansas: High Average Adjusted Gross Income for Top 1%
The average adjusted gross income among Kansas' top 1% households was $1.58 million, contributing 35.79% of the state's income taxes, or $5.07 billion, from 12,643 households.
Alabama: Substantial Income Tax Contributions
The top 1% of households in Alabama paid $6.78 billion in income taxes, representing 36.15% of the total. This group comprised 20,185 households, with an average adjusted gross income of $1.4 million.
Nebraska: Over 37% of Taxes from Top Earners
Nebraska's top 1% households paid 37.03% of all income taxes by state residents, amounting to $3.7 billion. These 8,660 households had an average adjusted gross income of $1.71 million.
South Carolina: Significant Tax Burden on Top Income Brackets
South Carolina's top 1% paid $8.87 billion in income taxes, accounting for 37.05% of the total. This involved 23,203 households, with an average adjusted gross income of $1.5 million.
Missouri: Top 1% Contributions Exceeding a Third
The 26,898 households in the top 1% in Missouri paid $10.48 billion in income taxes, representing 37.16% of the total. Their average adjusted gross income was $1.54 million.
Oklahoma: Close to 38% from the Wealthiest
Oklahoma's top 1% paid 37.80% of all income taxes by state residents, totaling $5.62 billion. This group comprised 16,106 households, with an average adjusted gross income of $1.42 million.
Arizona: Over a Third of Taxes from Top Earners
The top 1% of households in Arizona paid 38% of all income taxes by state residents, amounting to $14.44 billion. This included 31,872 households, with an average adjusted gross income of $1.79 million.
Massachusetts: High Average Income and Tax Payments
Massachusetts' top 1% paid $26.65 billion in income taxes, with an average adjusted gross income of $2.97 million. This represents 38.19% of the state's total income tax, from 32,795 households.
Idaho: Substantial Tax Contributions from Elite Households
The 8,145 households in the top 1% in Idaho paid $3.39 billion in income taxes, accounting for 38.2% of the total. Their average adjusted gross income was $1.74 million.
Mississippi: High Proportion of Taxes from Wealthy Individuals
The average adjusted gross income among Mississippi's top 1% households was $1.15 million, contributing 38.29% of the state's income taxes, or $3.3 billion, from 11,731 households.
Georgia: Significant Tax Burden on Top Earners
Georgia's 46,220 top 1% households paid approximately $21 billion in income taxes, representing 38.31% of the total. Their average adjusted gross income was $1.76 million.
Illinois: Substantial Contributions from Wealthiest Households
Illinois' top 1% households paid $32.68 billion in income taxes, accounting for 38.39% of the total. This group of 56,794 households had an average adjusted gross income of $2.13 million.
California: Highest Total Tax Paid by Top 1%
California's top 1% paid an astounding $122.45 billion in income taxes, the highest total of any state, representing 38.6% of the state's total. This involved 175,045 households, with an average adjusted gross income of $2.6 million.
Louisiana: Over 38% of Taxes from Top Earners
Louisiana's top 1% paid $6.81 billion in income taxes, accounting for 38.72% of the statewide total. These 18,593 households had an average adjusted gross income of $1.41 million.
South Dakota: Significant Tax Contribution from Top Households
The 4,062 households in South Dakota's top 1% paid $2.02 billion in income taxes, representing 40.46% of the total. Their average adjusted gross income was $2.02 million.
Tennessee: Over 41% of Taxes from Elite Earners
Tennessee's top 1% paid $14.55 billion in income taxes, accounting for 41.04% of the statewide total. This involved 30,531 households, with an average adjusted gross income of $1.85 million.
Utah: High Average Income for Top 1% Households
Utah's top 1% had an average adjusted gross income of $2.21 million, contributing 41.16% of the state's income taxes, or $7.48 billion, from 13,991 households.
Arkansas: Substantial Tax Share from Wealthy Residents
Arkansas' top 1% paid 42.22% of all income taxes by state residents, amounting to $4.81 billion. This group of 12,198 households had an average adjusted gross income of $1.7 million.
Montana: Nearly 43% of Taxes from Top Earners
Montana's 5,101 top 1% households paid $2.69 billion in income taxes, representing 42.92% of the total. Their average adjusted gross income was $2.13 million.
Connecticut: Elite Households with Very High Average Incomes
The top 1% households in Connecticut had an average adjusted gross income of $3.43 million, contributing 43.85% of the state's income taxes, or $16.28 billion, from 16,917 households.
Texas: Significant Tax Contribution from Top 1%
Texas' top 1% households paid $81.99 billion in income taxes, accounting for 44.52% of the statewide total. This involved 128,130 households, with an average adjusted gross income of $2.4 million.
New York: Over 46% of Taxes from Top Earners
The top 1% in New York paid $79.49 billion in income taxes—over 46.26% of the statewide total. This group of 91,840 households had an average adjusted gross income of $3.13 million.
Nevada: More Than Half of All Income Taxes from Top 1%
Nevada's top 1% paid more than half of all income taxes by state residents, specifically 51.12%, amounting to $11.01 billion. This involved 14,754 households, with an average adjusted gross income of $2.99 million.
Florida: Second Highest Contribution from the Wealthiest
Florida's top 1% households paid $96.26 billion in federal income taxes, accounting for 53.62% of the statewide total. This group of 105,101 households had an average adjusted gross income of $3.53 million.
Wyoming: The Highest Contribution from the Top 1%
Wyoming's top 1% paid the highest share nationwide, contributing 54.67% of all income taxes by state residents, or $2.46 billion. These 2,611 households reported an average adjusted gross income of $4.08 million.
