The top 1% of earners across the U.S. earn an average of 19.5% of all income — sometimes garnering criticism from pundits and politicians — but pay 37% of total income taxes. This cohort thus contributes the largest chunk of funding for infrastructure, healthcare, welfare programs, and more, despite advantages that may enable them to minimize their taxes through professionally guided strategies or more tax-friendly locations. Policies that propose taxing higher-income households more can potentially offer more tax revenue, but also have the potential to scare away that tax revenue and any additional spending with local businesses that may come with it.
With this in mind, SmartAsset examined the latest IRS data to determine where the top 1% of earners contribute the most — and least — in taxes. The total in income taxes collected from this group, as well as their average adjusted gross income (AGI), is also evaluated.
Key Findings
The top 1% pays more than 50% of all income tax revenue in three states. Wyoming has the highest contributions from the top 1% of earners, with 54.7% of income tax revenue coming from 2,611 households. Florida follows closely, with 105,101 top 1% households contributing 53.6% of all income taxes collected. Nevada ranks third with 51.1% of income tax revenue coming from its 14,754 highest-earning households.
In New York, the top 1% of earners contribute 46.2% of all income taxes. New York ranks fourth studywide for the income tax contributions made by the top 1%. The average AGI across these 91,840 households is $3.13 million. Overall, New York’s elite earners pay roughly $79.5 billion in income taxes per year.
The top 1% in California pays over $122 billion per year in income taxes. The highest gross income tax collections come from Californians, where 175,045 households make up the top 1% of earners. These households average an AGI of $2.60 million, and contribute 38.6% of total income taxes collected from state residents. Overall, this puts California in 13th place studywide for contributions made by its top 1%.
Top earners in Connecticut face the highest effective tax rates. Effectively, Connecticut’s top 1% pays an average of 28.09% on their $3.43 million average household AGI. This generates just over $16 billion in taxes collected, or 43.85% of all income taxes collected from state residents. Meanwhile, Wyoming’s top 1% faces the lowest effective income tax rate at 23.1%.
SmartAsset
Taxes Paid by the Top 1% in Each State
States are ranked based on the percentage of all personal income taxes paid by the top 1% of earners.
Wyoming
Share of income taxes paid by top 1%: 54.67%
Top 1%’s share of earned income: 34.53%
Total top 1% households: 2,611
Average AGI of 1%: $4,079,658
Total income tax paid by 1% (thousands of dollars): $2,460,940
Average effective tax rate on 1%: 23.1%
Florida
Share of income taxes paid by top 1%: 53.62%
Top 1%’s share of earned income: 32.65%
Total top 1% households: 105,101
Average AGI of 1%: $3,525,962
Total income tax paid by 1% (thousands of dollars): $96,264,565
Average effective tax rate on 1%: 25.98%
Nevada
Share of income taxes paid by top 1%: 51.12%
Top 1%’s share of earned income: 29.83%
Total top 1% households: 14,754
Average AGI of 1%: $2,988,501
Total income tax paid by 1% (thousands of dollars): $11,010,104
Average effective tax rate on 1%: 24.97%
New York
Share of income taxes paid by top 1%: 46.26%
Top 1%’s share of earned income: 27.92%
Total top 1% households: 91,840
Average AGI of 1%: $3,133,515
Total income tax paid by 1% (thousands of dollars): $79,488,609
Average effective tax rate on 1%: 27.62%
Texas
Share of income taxes paid by top 1%: 44.52%
Top 1%’s share of earned income: 24.35%
Total top 1% households: 128,130
Average AGI of 1%: $2,395,147
Total income tax paid by 1% (thousands of dollars): $81,990,700
Average effective tax rate on 1%: 26.72%
Connecticut
Share of income taxes paid by top 1%: 43.85%
Top 1%’s share of earned income: 26.6%
Total top 1% households: 16,917
Average AGI of 1%: $3,427,135
Total income tax paid by 1% (thousands of dollars): $16,284,881
Average effective tax rate on 1%: 28.09%
Montana
Share of income taxes paid by top 1%: 42.92%
Top 1%’s share of earned income: 22.83%
Total top 1% households: 5,101
Average AGI of 1%: $2,129,937
Total income tax paid by 1% (thousands of dollars): $2,690,156
Average effective tax rate on 1%: 24.76%
Arkansas
Share of income taxes paid by top 1%: 42.22%
Top 1%’s share of earned income: 21.52%
Total top 1% households: 12,198
Average AGI of 1%: $1,699,386
Total income tax paid by 1% (thousands of dollars): $4,814,153
Average effective tax rate on 1%: 23.22%
Utah
Share of income taxes paid by top 1%: 41.16%
Top 1%’s share of earned income: 21.78%
Total top 1% households: 13,991
Average AGI of 1%: $2,206,993
Total income tax paid by 1% (thousands of dollars): $7,477,634
Average effective tax rate on 1%: 24.22%
Tennessee
Share of income taxes paid by top 1%: 41.04%
Top 1%’s share of earned income: 21.08%
Total top 1% households: 30,531
Average AGI of 1%: $1,848,680
Total income tax paid by 1% (thousands of dollars): $14,547,566
Average effective tax rate on 1%: 25.77%
South Dakota
Share of income taxes paid by top 1%: 40.46%
Top 1%’s share of earned income: 20.97%
Total top 1% households: 4,062
Average AGI of 1%: $2,016,594
Total income tax paid by 1% (thousands of dollars): $2,020,508
Average effective tax rate on 1%: 24.67%
Louisiana
Share of income taxes paid by top 1%: 38.72%
Top 1%’s share of earned income: 18.37%
Total top 1% households: 18,593
Average AGI of 1%: $1,405,686
Total income tax paid by 1% (thousands of dollars): $6,806,423
Average effective tax rate on 1%: 26.04%
California
Share of income taxes paid by top 1%: 38.6%
Top 1%’s share of earned income: 22.65%
Total top 1% households: 175,045
Average AGI of 1%: $2,596,049
Total income tax paid by 1% (thousands of dollars): $122,452,981
Average effective tax rate on 1%: 26.95%
Illinois
Share of income taxes paid by top 1%: 38.39%
Top 1%’s share of earned income: 20.84%
Total top 1% households: 56,794
Average AGI of 1%: $2,132,780
Total income tax paid by 1% (thousands of dollars): $32,677,874
Average effective tax rate on 1%: 26.98%
Georgia
Share of income taxes paid by top 1%: 38.31%
Top 1%’s share of earned income: 20.02%
Total top 1% households: 46,220
Average AGI of 1%: $1,763,292
Total income tax paid by 1% (thousands of dollars): $21,001,340
Average effective tax rate on 1%: 25.77%
Mississippi
Share of income taxes paid by top 1%: 38.29%
Top 1%’s share of earned income: 17.03%
Total top 1% households: 11,731
Average AGI of 1%: $1,151,973
Total income tax paid by 1% (thousands of dollars): $3,297,109
Average effective tax rate on 1%: 24.4%
Idaho
Share of income taxes paid by top 1%: 38.2%
Top 1%’s share of earned income: 19.23%
Total top 1% households: 8,145
Average AGI of 1%: $1,735,423
Total income tax paid by 1% (thousands of dollars): $3,392,957
Average effective tax rate on 1%: 24%
Massachusetts
Share of income taxes paid by top 1%: 38.19%
Top 1%’s share of earned income: 23.14%
Total top 1% households: 32,795
Average AGI of 1%: $2,971,999
Total income tax paid by 1% (thousands of dollars): $26,646,912
Average effective tax rate on 1%: 27.34%
Arizona
Share of income taxes paid by top 1%: 38%
Top 1%’s share of earned income: 19.76%
Total top 1% households: 31,872
Average AGI of 1%: $1,791,856
Total income tax paid by 1% (thousands of dollars): $14,438,918
Average effective tax rate on 1%: 25.28%
Oklahoma
Share of income taxes paid by top 1%: 37.8%
Top 1%’s share of earned income: 18.08%
Total top 1% households: 16,106
Average AGI of 1%: $1,419,057
Total income tax paid by 1% (thousands of dollars): $5,622,529
Average effective tax rate on 1%: 24.6%
Missouri
Share of income taxes paid by top 1%: 37.16%
Top 1%’s share of earned income: 18.27%
Total top 1% households: 26,898
Average AGI of 1%: $1,537,021
Total income tax paid by 1% (thousands of dollars): $10,481,163
Average effective tax rate on 1%: 25.35%
South Carolina
Share of income taxes paid by top 1%: 37.05%
Top 1%’s share of earned income: 18.2%
Total top 1% households: 23,203
Average AGI of 1%: $1,503,556
Total income tax paid by 1% (thousands of dollars): $8,867,845
Average effective tax rate on 1%: 25.42%
Nebraska
Share of income taxes paid by top 1%: 37.03%
Top 1%’s share of earned income: 18.51%
Total top 1% households: 8,660
Average AGI of 1%: $1,711,705
Total income tax paid by 1% (thousands of dollars): $3,704,671
Average effective tax rate on 1%: 24.99%
Alabama
Share of income taxes paid by top 1%: 36.15%
Top 1%’s share of earned income: 17.78%
Total top 1% households: 20,185
Average AGI of 1%: $1,402,613
Total income tax paid by 1% (thousands of dollars): $6,778,809
Average effective tax rate on 1%: 23.94%
Kansas
Share of income taxes paid by top 1%: 35.79%
Top 1%’s share of earned income: 17.7%
Total top 1% households: 12,643
Average AGI of 1%: $1,580,617
Total income tax paid by 1% (thousands of dollars): $5,066,051
Average effective tax rate on 1%: 25.35%
Wisconsin
Share of income taxes paid by top 1%: 35.54%
Top 1%’s share of earned income: 17.51%
Total top 1% households: 27,293
Average AGI of 1%: $1,572,276
Total income tax paid by 1% (thousands of dollars): $11,024,109
Average effective tax rate on 1%: 25.69%
Indiana
Share of income taxes paid by top 1%: 35.52%
Top 1%’s share of earned income: 17.06%
Total top 1% households: 30,120
Average AGI of 1%: $1,393,989
Total income tax paid by 1% (thousands of dollars): $10,518,818
Average effective tax rate on 1%: 25.05%
New Hampshire
Share of income taxes paid by top 1%: 35.41%
Top 1%’s share of earned income: 20.1%
Total top 1% households: 6,796
Average AGI of 1%: $2,270,304
Total income tax paid by 1% (thousands of dollars): $3,946,877
Average effective tax rate on 1%: 25.58%
North Carolina
Share of income taxes paid by top 1%: 35.28%
Top 1%’s share of earned income: 17.93%
Total top 1% households: 46,525
Average AGI of 1%: $1,589,460
Total income tax paid by 1% (thousands of dollars): $19,037,365
Average effective tax rate on 1%: 25.74%
Pennsylvania
Share of income taxes paid by top 1%: 35.09%
Top 1%’s share of earned income: 18.42%
Total top 1% households: 58,541
Average AGI of 1%: $1,728,864
Total income tax paid by 1% (thousands of dollars): $26,128,752
Average effective tax rate on 1%: 25.82%
Michigan
Share of income taxes paid by top 1%: 35.01%
Top 1%’s share of earned income: 17.9%
Total top 1% households: 45,218
Average AGI of 1%: $1,500,999
Total income tax paid by 1% (thousands of dollars): $16,650,121
Average effective tax rate on 1%: 24.53%
Ohio
Share of income taxes paid by top 1%: 34.6%
Top 1%’s share of earned income: 16.9%
Total top 1% households: 53,103
Average AGI of 1%: $1,391,898
Total income tax paid by 1% (thousands of dollars): $18,842,538
Average effective tax rate on 1%: 25.49%
Colorado
Share of income taxes paid by top 1%: 34.51%
Top 1%’s share of earned income: 19.21%
Total top 1% households: 27,685
Average AGI of 1%: $2,072,294
Total income tax paid by 1% (thousands of dollars): $14,894,687
Average effective tax rate on 1%: 25.96%
North Dakota
Share of income taxes paid by top 1%: 34.41%
Top 1%’s share of earned income: 17.33%
Total top 1% households: 3,431
Average AGI of 1%: $1,709,719
Total income tax paid by 1% (thousands of dollars): $1,521,767
Average effective tax rate on 1%: 25.94%
Kentucky
Share of income taxes paid by top 1%: 34.26%
Top 1%’s share of earned income: 15.79%
Total top 1% households: 18,395
Average AGI of 1%: $1,198,642
Total income tax paid by 1% (thousands of dollars): $5,451,182
Average effective tax rate on 1%: 24.72%
New Jersey
Share of income taxes paid by top 1%: 33.78%
Top 1%’s share of earned income: 19.43%
Total top 1% households: 43,042
Average AGI of 1%: $2,282,674
Total income tax paid by 1% (thousands of dollars): $26,899,308
Average effective tax rate on 1%: 27.38%
Rhode Island
Share of income taxes paid by top 1%: 33.58%
Top 1%’s share of earned income: 17.56%
Total top 1% households: 5,224
Average AGI of 1%: $1,607,011
Total income tax paid by 1% (thousands of dollars): $2,150,700
Average effective tax rate on 1%: 25.62%
Hawai’i
Share of income taxes paid by top 1%: 33.57%
Top 1%’s share of earned income: 17.11%
Total top 1% households: 6,472
Average AGI of 1%: $1,533,614
Total income tax paid by 1% (thousands of dollars): $2,455,554
Average effective tax rate on 1%: 24.74%
Iowa
Share of income taxes paid by top 1%: 33.16%
Top 1%’s share of earned income: 15.86%
Total top 1% households: 13,821
Average AGI of 1%: $1,407,014
Total income tax paid by 1% (thousands of dollars): $4,813,252
Average effective tax rate on 1%: 24.75%
Virginia
Share of income taxes paid by top 1%: 32.94%
Top 1%’s share of earned income: 18.05%
Total top 1% households: 39,103
Average AGI of 1%: $1,898,663
Total income tax paid by 1% (thousands of dollars): $19,239,261
Average effective tax rate on 1%: 25.91%
Minnesota
Share of income taxes paid by top 1%: 32.64%
Top 1%’s share of earned income: 16.65%
Total top 1% households: 26,423
Average AGI of 1%: $1,661,543
Total income tax paid by 1% (thousands of dollars): $11,524,941
Average effective tax rate on 1%: 26.25%
New Mexico
Share of income taxes paid by top 1%: 32.3%
Top 1%’s share of earned income: 15.02%
Total top 1% households: 9,310
Average AGI of 1%: $1,051,108
Total income tax paid by 1% (thousands of dollars): $2,380,544
Average effective tax rate on 1%: 24.33%
Washington
Share of income taxes paid by top 1%: 32.06%
Top 1%’s share of earned income: 18.7%
Total top 1% households: 35,597
Average AGI of 1%: $2,192,376
Total income tax paid by 1% (thousands of dollars): $20,012,467
Average effective tax rate on 1%: 25.64%
Vermont
Share of income taxes paid by top 1%: 32.04%
Top 1%’s share of earned income: 16.03%
Total top 1% households: 3,123
Average AGI of 1%: $1,394,199
Total income tax paid by 1% (thousands of dollars): $1,078,255
Average effective tax rate on 1%: 24.76%
Maine
Share of income taxes paid by top 1%: 30.48%
Top 1%’s share of earned income: 14.94%
Total top 1% households: 6,618
Average AGI of 1%: $1,225,687
Total income tax paid by 1% (thousands of dollars): $1,976,671
Average effective tax rate on 1%: 24.37%
Maryland
Share of income taxes paid by top 1%: 30.45%
Top 1%’s share of earned income: 16.17%
Total top 1% households: 29,040
Average AGI of 1%: $1,647,004
Total income tax paid by 1% (thousands of dollars): $12,675,749
Average effective tax rate on 1%: 26.5%
Delaware
Share of income taxes paid by top 1%: 30.38%
Top 1%’s share of earned income: 15.2%
Total top 1% households: 4,726
Average AGI of 1%: $1,362,040
Total income tax paid by 1% (thousands of dollars): $1,647,326
Average effective tax rate on 1%: 25.59%
Oregon
Share of income taxes paid by top 1%: 30.37%
Top 1%’s share of earned income: 15.6%
Total top 1% households: 19,053
Average AGI of 1%: $1,430,297
Total income tax paid by 1% (thousands of dollars): $6,773,041
Average effective tax rate on 1%: 24.85%
West Virginia
Share of income taxes paid by top 1%: 30.28%
Top 1%’s share of earned income: 13.12%
Total top 1% households: 7,316
Average AGI of 1%: $908,389
Total income tax paid by 1% (thousands of dollars): $1,647,747
Average effective tax rate on 1%: 24.79%
Alaska
Share of income taxes paid by top 1%: 26.37%
Top 1%’s share of earned income: 13.34%
Total top 1% households: 3,223
Average AGI of 1%: $1,252,711
Total income tax paid by 1% (thousands of dollars): $1,016,945
Average effective tax rate on 1%: 25.19%
Data and Methodology
SmartAsset analyzed the most recent data from the IRS for personal income tax returns (tax year 2022) to rank states by the total income tax paid by the top 1%. The effective tax rates for the 1%, total income taxes paid by this cohort, average AGI per top 1% household, number of top 1% earning households, and percentage of all personal income earned by the top 1% are also examined. Tax returns are assumed to represent a single household.
Reader Comments(0)