The Top 1% Tax Contributions in the Wealthiest U.S. States
According to recent analysis, the richest states in America based on the number of individuals in the top 1% who file tax returns are California, Texas, and Florida. Notably, Florida leads in the proportion of income taxes paid by the top 1%, contributing 53.6%. This rate is second only to Wyoming’s 54.7%, while Texas ranks fifth at 44.5%.
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GOBankingRates conducted a thorough examination of tax return data from all states. Their research revealed that four of the top ten states with the highest share of income tax from the top 1% are located in the South. This group includes Arkansas at 42.2% and Tennessee at 41.0%. Below is a closer look at how much the top 1% are contributing through taxes across various southern states.
Alabama
- Total income tax share for the top 1%: 36.2%
- Average tax rate percentage for the top 1%: 23.9%
- Total income tax for the top 1%: $6,778,809,000
- Number of returns for the top 1%: 20,185
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Arkansas
- Total income tax share for the top 1%: 42.2%
- Average tax rate percentage for the top 1%: 23.2%
- Total income tax for the top 1%: $4,814,153,000
- Number of returns for the top 1%: 12,198
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Florida
- Total income tax share for the top 1%: 53.6%
- Average tax rate percentage for the top 1%: 26%
- Total income tax for the top 1%: $96,264,565,000
- Number of returns for the top 1%: 105,101
Georgia
- Total income tax share for the top 1%: 38.3%
- Average tax rate percentage for the top 1%: 25.8%
- Total income tax for the top 1%: $21,001,340,000
- Number of returns for the top 1%: 46,220
Kentucky
- Total income tax share for the top 1%: 34.3%
- Average tax rate percentage for the top 1%: 24.7%
- Total income tax for the top 1%: $5,451,182,000
- Number of returns for the top 1%: 18,395
Louisiana
- Total income tax share for the top 1%: 38.7%
- Average tax rate percentage for the top 1%: 26%
- Total income tax for the top 1%: $6,806,423,000
- Number of returns for the top 1%: 18,593
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Mississippi
- Total income tax share for the top 1%: 38.3%
- Average tax rate percentage for the top 1%: 24.4%
- Total income tax for the top 1%: $3,297,109,000
- Number of returns for the top 1%: 11,731
North Carolina
- Total income tax share for the top 1%: 35.3%
- Average tax rate percentage for the top 1%: 25.7%
- Total income tax for the top 1%: $19,037,365,000
- Number of returns for the top 1%: 46,525
Oklahoma
- Total income tax share for the top 1%: 37.8%
- Average tax rate percentage for the top 1%: 24.6%
- Total income tax for the top 1%: [data missing]
Tax Contributions of the Top 1% in Southern States Revealed
Income Tax Contributions by State
Tax data illustrates the significant share of income tax contributed by the top 1% in various Southern states. The contributions vary considerably from state to state, with some states showing a notably higher reliance on this income group for tax revenue. Below is a breakdown of tax contributions and relevant data.
South Carolina
- Total income tax share for the top 1%: 37.1%
- Average tax rate percentage for the top 1%: 25.4%
- Total income tax for the top 1%: $8,867,845,000
- Number of returns for the top 1%: 23,203
Tennessee
- Total income tax share for the top 1%: 41%
- Average tax rate percentage for the top 1%: 25.8%
- Total income tax for the top 1%: $14,547,566,000
- Number of returns for the top 1%: 30,531
Texas
- Total income tax share for the top 1%: 44.5%
- Average tax rate percentage for the top 1%: 26.7%
- Total income tax for the top 1%: $81,990,700,000
- Number of returns for the top 1%: 128,130
Virginia
- Total income tax share for the top 1%: 32.9%
- Average tax rate percentage for the top 1%: 25.9%
- Total income tax for the top 1%: $19,239,261,000
- Number of returns for the top 1%: 39,103
West Virginia
- Total income tax share for the top 1%: 30.3%
- Average tax rate percentage for the top 1%: 24.8%
- Total income tax for the top 1%: $1,647,747,000
- Number of returns for the top 1%: 7,316
Methodology: GOBankingRates analyzed individual tax returns across states to determine how much the top 1% contributes in taxes. This analysis used data from IRS SOI tax statistics, incorporating individual tax rates based on income percentiles. All information was collected as of March 6, 2025.
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This analysis originally appeared on GOBankingRates.com, highlighting how much the top 1% pays in taxes across Southern states.
The views expressed herein are those of the author and do not necessarily reflect those of Nasdaq, Inc.
