Just in time for Tax Day, coming up on Monday (April 15th), a new study analyzes how much Americans are estimated to pay in income and other taxes throughout their lifetime. Brace yourself … it’s an unbelievable amount. The average American will pay $524,625 in taxes over the course of their life.
- The research from Self Financial considers taxes on income, homes, cars, clothing, food, drinks, entertainment and personal care based on data from taxes, the Federal Consumer Expenditure Survey, Zillow and more.
The study reveals:
- That $524,625 lifetime tax amount comes out to just over a third of the average American’s lifetime earnings of close to $1.5-million ($1,494,986) going just to taxes.
- Tax on earnings makes up most of that, as the average American will pay $270,414 during their life just on taxes on their wages.
- Taxes on property will cost the average homeowner an extra $165,492.
States don’t all pay the same in taxes:
(Check out the state-by-state breakdown of estimated lifetime taxes here)
- Taxes are really high in the Northeast. Folks in New Jersey will pay the most in lifetime tax cost at $987,117.
- Washington, D.C. comes in second with a lifetime tax burden of $884,820, followed by Connecticut with $855,307 and Massachusetts in fourth with $816,700.
- The lowest-tax state is West Virginia, where residents pay a lifetime cost of $358,407.
- Nine states don’t have a state income tax: Alaska, Florida, Nevada, New Hampshire, South Dakota, Tennessee, Texas, Washington and Wyoming.
- But they’re not all low-tax states, for example, Washington state has fairly high sales and property taxes and one of the highest estate taxes in the country.
Source: Self Financial
photo: GETTY
Photo: pcess609 / iStock / Getty Images