How Much the Top 5% Pay in Taxes in Every State

Core Insights - The study by GOBankingRates highlights significant disparities in income retention for the top 5% of earners across different states in the U.S. due to varying tax liabilities [1][5]. Income Disparities - The average income for the top 5% of earners is highest in Connecticut at $691,840 and lowest in Mississippi at $350,029, showing a difference of over $300,000 [5]. Tax Burden Analysis - California imposes the highest tax burden on high earners, with single filers losing 42.8% of their income and married filers losing 35.8% [5]. - South Dakota offers the most favorable tax environment, with tax burdens of 31.3% for single filers and 23.6% for married filers [5]. - On average, married couples filing jointly experience a lower tax burden (28.8%) compared to single filers (36.1%), resulting in a savings of over 7% of total income [5]. State Income Tax Overview - Nine states have no state income tax (Alaska, Florida, Nevada, New Hampshire, South Dakota, Tennessee, Texas, Washington, and Wyoming), where the total tax burden for the top 5% is primarily influenced by federal and FICA taxes, keeping it below the national average [5][6].