Income Tax Distribution
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5 States Where the Top 1% Pay the Least in Taxes
Yahoo Finance· 2026-01-01 11:55
Core Insights - The top 1% of households in the U.S. earn approximately 19.5% of total income but contribute around 37% of total income taxes [1] Tax Contributions by State - In states like Wyoming, Florida, and Nevada, the top 1% pay over 50% of all income tax revenue [2] - Alaska has the lowest contribution from the top 1%, with these households paying around 26% of total income taxes [3] - West Virginia ranks second for the smallest share of taxes paid by the top 1%, contributing slightly over 30% of total income tax [5][6] - In Oregon, the top 1% pays slightly over 30% of income taxes, contributing over $6 billion and accounting for 15.6% of total income [7] - Delaware's top 1% earns 15.2% of total income but pays just over 30% of income taxes [8] - Maryland rounds out the top five states where the top 1% pays the least in taxes, covering approximately 30% of income taxes [9]