While there are many ways to show how much is collected in taxes by state governments, our Index is designed to show how well states structure their tax systems by focusing on the how more than the how much in recognition of the fact that there are better and worse ways to raise revenue.
The federal tax code remains a major source of frustration and controversy for Americans, and a hindrance to economic growth and opportunity. Other countries, such as Estonia, have proven that sufficient tax revenue can be collected in a less frustrating and more efficient way.
While there are many factors that affect a country’s economic performance, taxes play an important role. A well-structured tax code is easy for taxpayers to comply with and can promote economic development while raising sufficient revenue for a government’s priorities.
States are unprepared for the ongoing shift to remote and flexible work arrangements, or for the industries and activities of today, to say nothing of tomorrow. In some states, moreover, existing tax provisions exacerbate the impact of high inflation and contribute to the supply chain crisis.
The Trump administration imposed nearly $80 billion worth of new taxes on Americans by levying tariffs on thousands of products, amounting to one of the largest tax increases in decades. The Biden administration has so far kept most of the Trump administration tariffs in place.
The overall U.S. tax and transfer system is overwhelmingly progressive, and understanding the extent—and source—of that progressivity is essential for lawmakers considering the trade-offs associated with each tax policy decision.
2023 Tax Brackets
Facts & Figures 2023: How Does Your State Compare?
Summary of the Latest Federal Income Tax Data, 2023 Update
State and Local Sales Tax Rates, Midyear 2023
State Individual Income Tax Rates and Brackets for 2023
Top Personal Income Tax Rates in Europe
Corporate Tax Rates around the World, 2022
The Tax Foundation is the nation’s leading nonpartisan tax policy 501(c)(3) nonprofit. For over 80 years, our mission has remained the same: to improve lives through tax policies that lead to greater economic growth and opportunity.
Our vision is a world where the tax code doesn’t stand in the way of success. Every day, our team of trusted experts strives towards that vision by remaining principled, insightful, and engaged and by advancing the principles of sound tax policy: simplicity, neutrality, transparency, and stability.
Congress should reconsider key elements of the IRA, including the book minimum tax and the green energy credits, with an eye towards simplification and fiscal responsibility.
Pillar Two of the OECD global tax deal presents two new threats to the U.S. tax base. First, it is likely to increase foreign taxes on U.S. firms, reducing both U.S. shareholders’ income and U.S. corporate tax revenues. Second, it has enforcement mechanisms that may result in higher tax burdens or compliance costs for U.S. firms, even on their U.S. income, and threatens Congress’s ability to set domestic tax policy.
Moving from one athletic conference to another can mean millions in additional revenue sharing from lucrative broadcasting contracts and other revenue streams, all tax-free.
The early evidence indicates that making a “good return greater” through Opportunity Zone tax incentives is an ineffective and poorly targeted way to raise the living standards of low-income residents.
In tax year 2020, taxpayers claimed more than 159 million tax credits on their individual income tax returns worth a total of more than $277 billion. That was an increase of $35.3 billion from tax year 2019, largely due to an influx of pandemic relief administered through the tax code in 2020.
California pumps out the highest state gas tax rate of 77.9 cents per gallon (cpg), followed by Illinois (66.5 cpg) and Pennsylvania (62.2 cpg).
As the TCJA expiration nears, lawmakers face difficult choices in reforming the CTC. While revenue, distributional and economic effects are important, lawmakers should also focus on simplifying the rules and reducing the administrative challenges.
However well-intended they may be, sales tax holidays remain the same as they always have been—ineffective and inefficient.
Details and analysis of the latest House GOP tax plan, the American Families and Jobs Act. Learn more about the House Republican tax plan.
TaxEDU is designed to advance tax policy education, discussion, and understanding in classrooms, living rooms, and government chambers. It combines the best aspects of cutting-edge and traditional education to elevate the debate, enable deeper understanding, and achieve principled policy.
TaxEDU gives teachers the tools to make students better citizens, taxpayers a vocabulary to see through the rhetoric, lawmakers crash courses to write smarter laws, and videos and podcasts for anyone who wants to boost their tax knowledge on the go.
Understand the terms of the debate with our comprehensive glossary, including over 100 tax terms and concepts.
Our animated explainer videos are designed for the classroom, social media, and anyone looking to boost their tax knowledge on the go.
Our primers, case studies, and lesson plans form a comprehensive crash course ready for the classroom.
The Deduction, a Tax Foundation podcast, is your guide to the complicated world of tax and economics.
Learn about the principles of sound tax policy—simplicity, transparency, neutrality, and stability—which should serve as touchstones for policymakers and taxpayers everywhere.
Our Tax Foundation University and State Tax Policy Boot Camp lecture series are designed to educate tomorrow's leaders on the principles of sound tax policy.