CFED Scorecard

Financial Assets & Income

Outcome Measures

Income Poverty Rate

Asset Poverty Rate

Asset Poverty by Race

Asset Poverty by Gender

Asset Poverty by Family Structure

Liquid Asset Poverty Rate

Liquid Asset Poverty by Race

Liquid Asset Poverty by Gender

Liquid Asset Poverty by Family Structure

Extreme Asset Poverty Rate

Net Worth

Net Worth by Race

Net Worth by Income

Net Worth by Gender

Net Worth by Family Structure

Unbanked Households

Underbanked Households

Consumers with Subprime Credit

Borrowers 90+ Days Overdue

Average Credit Card Debt

Bankruptcy Rate

Policy Priorities

Tax Credits for Working Families

State IDA Program Support

Lifting Asset Limits in Public Benefit Programs

Protections from Predatory Short-Term Loans

Additional Policies

Income Tax Threshold

Tax Burden by Income

Prize-Linked Savings

Paperless Payday

Trend Indicators

Change in Net Worth

Change in Asset Poverty

Change in Liquid Asset Poverty

Businesses & Jobs

Housing & Homeownership

Health Care

Education

CFED Assets & Opportunity Scorecard

Tax Burden by Income

Definition

Ratio of the effective state tax rate for families in the bottom income quintile to families in the top one percent income bracket, 2011. The tax rate is the total average state and local taxes as a percentage of income.

Description

States have the flexibility to design their own tax rates and structures to fund public services. Most states rely on three types of taxes: personal income, property and consumption (sales and excise) taxes. Whether the state’s tax system is regressive (taxes the poor more heavily than the rich) or progressive (taxes the rich more heavily than the poor) depends, in part, on how much the state relies on each of these three types of taxes. Income taxes are usually progressive, whereas property taxes and consumption taxes are usually regressive. In almost all states, the poor pay a higher proportion of their income in taxes than wealthy residents do.

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Tax Burden by Income

Taxes Paid as a Percent of Income (%) 1
StatePoorest 20%Top 1%Ratio
Alabama  10.2%  4.0%  2.6 
Alaska  7.0%  2.2%  3.2 
Arizona  12.5%  4.6%  2.7 
Arkansas  12.1%  5.9%  2.1 
California  10.2%  7.4%  1.4 
Colorado  9.0%  4.2%  2.1 
Connecticut  11.2%  5.5%  2.0 
Delaware  6.0%  4.5%  1.3 
District of Columbia  6.2%  6.4%  1.0 
Florida  13.5%  2.1%  6.4 
Georgia  11.7%  5.7%  2.1 
Hawaii  12.2%  6.3%  1.9 
Idaho  8.6%  6.3%  1.4 
Illinois  13.0%  4.1%  3.2 
Indiana  11.9%  5.3%  2.2 
Iowa  11.0%  6.0%  1.8 
Kansas  9.2%  5.9%  1.6 
Kentucky  9.4%  6.1%  1.5 
Louisiana  10.4%  5.2%  2.0 
Maine  9.5%  6.9%  1.4 
Maryland  9.9%  6.2%  1.6 
Massachusetts  10.1%  4.8%  2.1 
Michigan  8.9%  5.3%  1.7 
Minnesota  9.2%  6.6%  1.4 
Mississippi  10.8%  5.5%  2.0 
Missouri  9.6%  5.4%  1.8 
Montana  6.1%  4.6%  1.3 
Nebraska  11.1%  6.1%  1.8 
Nevada  8.9%  1.6%  5.6 
New Hampshire  8.3%  2.0%  4.2 
New Jersey  10.7%  7.4%  1.4 
New Mexico  10.8%  4.5%  2.4 
New York  9.6%  7.2%  1.3 
North Carolina  9.5%  6.8%  1.4 
North Dakota  9.4%  4.3%  2.2 
Ohio  12.0%  6.4%  1.9 
Oklahoma  9.9%  4.8%  2.1 
Oregon  8.7%  6.2%  1.4 
Pennsylvania  11.2%  3.9%  2.9 
Rhode Island  11.9%  5.6%  2.1 
South Carolina  7.1%  5.5%  1.3 
South Dakota  11.0%  1.9%  5.8 
Tennessee  11.7%  3.1%  3.8 
Texas  12.2%  3.0%  4.1 
Utah  9.3%  4.9%  1.9 
Vermont  8.2%  7.5%  1.1 
Virginia  8.8%  5.2%  1.7 
Washington  17.3%  2.6%  6.7 
West Virginia  9.7%  6.5%  1.5 
Wisconsin  9.2%  6.7%  1.4 
Wyoming  8.3%  1.5%  5.5 

Source

Davis, Carl, et al. Who Pays? A Distributional Analysis of the Tax Systems in All 50 States. Washington, DC: Institute on Taxation and Economic Policy, 2009.

State Tax Codes As Poverty Fighting Tools: 2011 Update on Four Key Policies in All 50 States. Washington, DC: Institute on Taxation and Economic Policy, 2011.

Footnotes

1. Income quintiles do not include elderly families because state tax systems often treat elderly families very differently from other families. Data on income and taxes from 2007 but includes the impact of tax changes through October 2009.

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