Who Pays?


Major tax overhauls are on the agenda in a record number of states, and “Who Pays?” documents in state-by-state detail the precise distribution of state income taxes, sales and excise taxes and property taxes paid by each income group as of January 2013.  It is a critical baseline against which future proposals can be measured.

Most significantly, the report concludes that all states have regressive tax systems that ask more from low- and middle-income families than from the wealthiest.  It also finds:

- The average overall effective state and local tax rates by income group nationwide are 11.1 percent for the bottom 20 percent, 9.4 percent for the middle 20 percent and 5.6 percent for the top 1 percent

- Ten states with the most regressive tax systems are: Washington, Florida, South Dakota, Texas, Illinois, Tennessee, Arizona, Pennsylvania, Alabama and Indiana.

- States praised as “low tax” are often high tax states for low and middle income families.


Media Coverage:

NBC News: The ’47%’ pay more of their income in taxes

The Hill: State Tax Systems Regressive

Kansas City Star: Poor Kansans hit harder by taxes than rich

WPRI: RI taxes take most from poorest, least from the top 1%

Charlotte Observer: Will reform unfairly target the vulnerable?

Mortgomery Advertiser: Alabama's tax system among most regressive in nation, says report

Great Falls Tribune: Legislature considers bill to cut taxes on top income earners

Arkansas Times: Who pays taxes?

Honolulu Star Advertiser: Hawaii among most regressive states for taxation

For more news coverage of ITEP click here


ITEP Microsimulation Tax Model Overview

Infographic- Who pays the most in state and local taxes?

Infographic- Who benefits in states without an income tax?

Download images from the report here.

Want even more ITEP? Check us out on Twitter and Facebook!

Scroll over each state to see its tax system's distributional impact or click a state to see its state fact sheet (PDF):


You need to upgrade your Flash Player

(All files in PDF format)

Alabama Hawaii Michigan North Carolina Utah
Alaska Idaho Minnesota North Dakota Vermont
Illinois Mississippi Ohio Virginia
Arkansas Indiana Missouri Oklahoma Washington
California Iowa Montana Oregon West Virginia
Colorado Kansas Nebraska Pennsylvania Wisconsin
Connecticut Kentucky Nevada Rhode Island Wyoming
Delaware Louisiana New Hampshire South Carolina
District of Columbia
Maine New Jersey South Dakota
Florida Maryland New Mexico Tennessee
Georgia Massachusetts New York Texas

Poor Kansans hit harder by taxes than rich

Read more here: http://www.kansascity.com/2013/01/30/4038818/group-poor-kansans-hit-harder.html#storylink=cpy