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Top 1% Federal Income Tax Contributions Across US States

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.

Tama Phelps, a 64-year-old Michigan resident, shares her poignant journey of dedicating 39 years to caring for her daughter, who was born with spina bifida and now faces severe physical challenges. What she anticipated as a period of personal respite in retirement has instead transformed into an even more demanding caregiving role. This commitment is further complicated by the added responsibility of looking after her 89-year-old father. Her experience sheds light on the profound financial and emotional tolls borne by family caregivers, illustrating the complex balancing act between personal aspirations and deep-seated familial duties.

Phelps's story resonates with many who find themselves unexpectedly entrenched in caregiving during their later years. Her narrative underscores the critical need for robust support systems for families grappling with long-term care, not only for the sake of the individuals receiving care but also for the caregivers themselves, whose lives are irrevocably shaped by these responsibilities.

The Enduring Commitment of a Mother's Care

Tama Phelps, a dedicated mother from Ann Arbor, Michigan, recounts her nearly four-decade journey of caring for her daughter, who was born with spina bifida. This deeply personal account highlights the immense challenges and profound sacrifices involved in continuous caregiving. Phelps, now 64, had anticipated a different kind of retirement, but her life has been intricately woven with her daughter's evolving medical needs, transforming her golden years into a period of intensified commitment. Initially, her employment at the University of Michigan was crucial for maintaining her daughter's insurance coverage, a testament to the financial planning and steadfastness required to navigate life with a child with significant health issues. Despite the physical and emotional exhaustion, her story reflects an unwavering maternal bond and the extraordinary lengths a parent will go to ensure their child's well-being.

Phelps's narrative is a powerful illustration of the long-term impact of chronic illness on families. Her daughter, a college graduate with a strong intellect, has seen her physical condition deteriorate, leading to severe communication and mobility challenges. This decline has necessitated round-the-clock care, placing immense pressure on Phelps and her husband, who adapted their work schedules for years to provide constant supervision. The emotional strain is palpable as Phelps describes her daughter's unhappiness with her physical limitations, emphasizing the mental burden faced by both the patient and the caregiver. Phelps's situation also exposes the economic realities of long-term care, particularly the prohibitive costs of specialized facilities and the personal financial investments made over decades for therapies and essential equipment, such as wheelchairs costing as much as a vehicle.

Navigating Dual Caregiving Roles and Personal Sacrifice

Beyond her daughter's needs, Tama Phelps also bears the responsibility of caring for her 89-year-old father, who experienced financial hardship after his wife's passing and recently suffered a hip injury. This dual caregiving role amplifies the physical and mental demands on Phelps, as she constantly travels between her home and her father's, illustrating the compounding challenges faced by individuals caught in the Sandwich Generation. Her father's proactive approach to securing long-term care insurance offers a glimpse into the financial foresight needed to mitigate the costs of aging, a foresight not always possible for every family. Phelps's personal life has been largely subsumed by these duties; her retirement at 60, meant for personal freedom, has instead become a full-time caregiving position, leading to a significant contraction of her social life and personal pursuits.

Phelps's candid reflection on her personal sacrifices reveals the emotional isolation and profound changes to identity that can accompany intensive caregiving. Despite having a robust financial nest egg, built with the help of her brother, a financial advisor, her life is not one of leisure but of ceaseless responsibility. Her desire for her "life back" underscores the profound impact of caregiving on personal well-being and the longing for a reprieve. She articulates a critical societal need for facilities and support systems that could offer families temporary relief, acknowledging that such assistance would not only benefit the cared-for but also empower caregivers to be more effective and resilient. Her story is a powerful call for greater recognition and resources for those dedicating their lives to family care, highlighting the often-unseen struggles and the need for communal solutions to alleviate their burden.