Categories: Income

Tax Burden by State & Income: An Overview of Forex Trading

The tax burden imposed by state governments varies significantly depending on an individual’s income level. Those earning higher incomes usually bear a larger portion of the total tax burden than lower-income earners. To illustrate, in 2017 California imposed the highest taxes per capita in the U.S. On average, taxpayers with incomes in excess of $1 million bore 8.2% of their income in taxes compared to only 5.3% for taxpayers with incomes of $10,000 or less. Similarly, New York ranked third in per capita taxes, with those earning over $1 million paying an average of 8.1%, compared to 8.7% for taxpayers earning less than $20,000. Although taxes at the state level can increase the total burden on higher-income individuals, many states offer tax credits and deductions to lower-income earners.

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