State And Local Tax Rates By Income

State And Local Tax Rates By Income

So, just how unequal are state and local taxes? In their comprehensive 2009 report, the Institute on Taxation and Economic Policy analyzed the tax systems of all 50 states and major localities, and found that, as a whole, state and local tax systems are extremely regressive. As the graphic shows, the poorest 20 percent of Americans pay, on average, a combined state and local tax rate of 11 percent, while the wealthiest 1 percent pays less than half that: 5.3 percent. This disparity is even more pronounced in the most regressive states: in Washington State, which has the most regressive tax system, the poorest 20 percent pay an average tax rate of 17.3 percent while the top 1 percent pays just 2.3 percent.

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