Fiscal Fact No. 69
Across the nation, nearly every income group in every state has had its taxA tax is a mandatory payment or charge collected by local, state, and national governments from individuals or businesses to cover the costs of general government services, goods, and activities. es cut in recent years. With new data from the Internal Revenue Service (IRS) on the taxes paid for 2004, we can now see the full effects of the so-called Bush tax cuts enacted in 2001 and 2003. Because states have different demographic profiles, some states’ taxpayers benefit more than others from the tax cuts.
Since the Bush tax cuts went into effect, a growing number of tax filers have been paying no federal income taxes. Millions who paid into the federal till each year before 2001 now get every dollar back that the federal government withheld from their paychecks during the year, and then some. This trend is well documented but frequently ignored by critics of the tax cuts.
Two changes in tax law have caused this explosion in the number of “non-payers”—tax returns that have zero or even negative federal income tax liability. They are the expansion of the child tax creditA tax credit is a provision that reduces a taxpayer’s final tax bill, dollar-for-dollar. A tax credit differs from deductions and exemptions, which reduce taxable income, rather than the taxpayer’s tax bill directly. from $500 to $1,000 (complete in 2003) and the creation of the 10 percent taxable incomeTaxable income is the amount of income subject to tax, after deductions and exemptions. For both individuals and corporations, taxable income differs from—and is less than—gross income. bracket (complete in 2001).
Impact of Children on Number of Non-Payers
Table 1 illustrates how these two policy changes have affected the taxpaying public in each state. Even though the percentage of taxpayers who pay no income taxes has grown in every state, the tax savings vary widely from state to state. States with a high number of children per family, such as Utah, saw larger increases in the fraction of tax returns that had no liability. In states (and the District of Columbia) where there are fewer children per family, most taxpayers who owed taxes before 2001 still owe taxes each year.
The Census Bureau ranks the states based on the percentage of each state’s population that is under 18. The District of Columbia has the smallest percentage of children of any U.S. state (ranked 51st), and also has the fewest number of people pushed off the tax rolls. The correlation is not always that exact, but in general these child-friendly tax cuts push fewer people off the rolls in states with fewer children.
Typical are Wyoming (50th lowest in the growth of non-payers, 45th lowest in percentage of children), North Dakota (48th lowest in the growth of non-payers, 47th lowest in percentage of children), and Maine (41st lowest in the growth of non-payers, 50th lowest in percentage of children). Six of the ten states with the smallest increase in non-payers also have the smallest under-18 populations.
Before 2001, almost every tax return with zero liability had adjusted gross incomeFor individuals, gross income is the total pre-tax earnings from wages, tips, investments, interest, and other forms of income and is also referred to as “gross pay.” For businesses, gross income is total revenue minus cost of goods sold and is also known as “gross profit” or “gross margin.” (AGI) under $50,000. Most were under $40,000. Since 2003, however, many tax returns in the $50,000-$75,000 income group are showing up in the non-payer category. This illustrates the dramatic decrease in the tax burdens of low-to-middle income earners that has occurred as a result of the tax cuts. Utah has seen the largest change in this income group: in 2000, about 2 percent of all returns in that income group were non-payers, while in 2004, 12 percent of those middle-income tax returns paid nothing in income taxes. In California, only 1 percent of tax returns in this bracket owed nothing in 2000, but four years later with the tax cuts fully phased in, 7 percent of the tax returns showing AGI of $50,000-$75,000 paid no income taxes to Uncle Sam.
Another factor influencing the growing number of non-payers is the increase in the “refundable portion” of the child tax credit. The opportunity to make money by filing a tax return encourages filing by individuals whose incomes are low enough that they are not required to file a return, or who had zero income withheld.
Conclusion
Before the 2001 and 2003 tax cuts, non-paying returns were approximately one-fourth of all tax returns, and they were almost exclusively in the lower-income groups. Now almost one-third of all tax returns show the filer getting every dollar withheld back, or even more. And for the first time, a significant percentage of tax filers in the middle-income group are being pushed off the rolls.
Because the child tax credit was doubled from $500 to $1,000 per child in 2003 with a larger refundable portion, and because a new 10 percent taxable income bracket was enacted in 2001, the number of tax returns with zero income tax liability has risen dramatically, as detailed by a comparison of IRS tax return data in 2000 and 2004. The correlation between states with the highest percentages of non-payers and those with the highest percentages of children in the population highlights the pronounced effect of the Bush tax cuts on the growing number of non-paying families with children.
Table 1: Number of Non-Paying Tax Returns Has Grown Dramatically from 2000 to 2004
| State | Income Group (AGI) | Before Recent Tax Cuts | After Recent Tax Cuts | Percentage Point Increase in Returns with Zero Tax Liability | ||
| Number of Returns With Zero Tax Liability (2000) | Percentage of All Returns with Zero Tax Liability (2000) | Number of Returns with Zero Tax Liability (2004) | Percentage of All Returns with Zero Tax Liability (2004) | |||
| United States | All Taxpayers | 29,731,304 | 22.85% | 41,942,378 | 31.51% | 8.66% |
| Under $50,000 | 29,614,856 | 31.67% | 41,093,085 | 44.53% | 12.86% | |
| $50,000 – $74,999 | 90,856 | 0.53% | 727,765 | 4.06% | 3.53% | |
| $75,000 – $99,999 | 14,867 | 0.17% | 93,058 | 0.93% | 0.76% | |
| $100,000 – $199,999 | 8,303 | 0.10% | 25,362 | 0.26% | 0.16% | |
| $200,000 and above | 2,422 | 0.09% | 3,108 | 0.10% | 0.01% | |
| Alabama | All Taxpayers | 542,252 | 28.48% | 709,532 | 37.14% | 8.66% |
| Under $50,000 | 541,287 | 36.82% | 702,777 | 49.61% | 12.79% | |
| $50,000 – $74,999 | 727 | 0.32% | 5,881 | 2.51% | 2.19% | |
| $75,000 – $99,999 | 116 | 0.11% | 632 | 0.50% | 0.39% | |
| $100,000 – $199,999 | 87 | 0.11% | 206 | 0.20% | 0.09% | |
| $200,000 and above | 35 | 0.15% | 36 | 0.12% | -0.02% | |
| Alaska | All Taxpayers | 44,309 | 13.48% | 71,661 | 20.76% | 7.28% |
| Under $50,000 | 44,106 | 19.10% | 69,626 | 29.55% | 10.46% | |
| $50,000 – $74,999 | 168 | 0.38% | 1,779 | 3.74% | 3.37% | |
| $75,000 – $99,999 | 21 | 0.08% | 217 | 0.75% | 0.67% | |
| $100,000 – $199,999 | 10 | 0.04% | 36 | 0.13% | 0.09% | |
| $200,000 and above | 4 | 0.09% | 3 | 0.05% | -0.04% | |
| Arizona | All Taxpayers | 488,403 | 22.69% | 762,770 | 32.15% | 9.46% |
| Under $50,000 | 486,060 | 31.14% | 745,221 | 44.88% | 13.74% | |
| $50,000 – $74,999 | 1,841 | 0.65% | 15,201 | 4.75% | 4.10% | |
| $75,000 – $99,999 | 308 | 0.22% | 1,774 | 1.01% | 0.79% | |
| $100,000 – $199,999 | 145 | 0.11% | 507 | 0.30% | 0.19% | |
| $200,000 and above | 49 | 0.12% | 67 | 0.14% | 0.01% | |
| Arkansas | All Taxpayers | 322,159 | 28.80% | 425,035 | 37.41% | 8.61% |
| Under $50,000 | 321,687 | 36.04% | 421,244 | 48.46% | 12.41% | |
| $50,000 – $74,999 | 336 | 0.26% | 3,365 | 2.45% | 2.19% | |
| $75,000 – $99,999 | 80 | 0.16% | 336 | 0.52% | 0.36% | |
| $100,000 – $199,999 | 46 | 0.12% | 79 | 0.16% | 0.03% | |
| $200,000 and above | 10 | 0.08% | 11 | 0.07% | -0.01% | |
| California | All Taxpayers | 3,522,822 | 23.70% | 4,941,456 | 32.24% | 8.54% |
| Under $50,000 | 3,498,989 | 33.96% | 4,770,763 | 46.58% | 12.62% | |
| $50,000 – $74,999 | 18,460 | 0.96% | 141,666 | 6.94% | 5.99% | |
| $75,000 – $99,999 | 3,214 | 0.31% | 22,465 | 1.90% | 1.59% | |
| $100,000 – $199,999 | 1,750 | 0.15% | 5,917 | 0.43% | 0.27% | |
| $200,000 and above | 409 | 0.09% | 645 | 0.14% | 0.04% | |
| Colorado | All Taxpayers | 401,465 | 19.15% | 590,139 | 27.96% | 8.81% |
| Under $50,000 | 399,424 | 27.95% | 574,042 | 41.35% | 13.40% | |
| $50,000 – $74,999 | 1,627 | 0.55% | 13,875 | 4.54% | 3.99% | |
| $75,000 – $99,999 | 218 | 0.14% | 1,698 | 0.95% | 0.81% | |
| $100,000 – $199,999 | 145 | 0.09% | 462 | 0.25% | 0.16% | |
| $200,000 and above | 51 | 0.09% | 62 | 0.12% | 0.02% | |
| Connecticut | All Taxpayers | 268,977 | 16.09% | 391,202 | 23.49% | 7.40% |
| Under $50,000 | 267,117 | 25.40% | 380,659 | 37.92% | 12.53% | |
| $50,000 – $74,999 | 1,345 | 0.54% | 8,615 | 3.51% | 2.97% | |
| $75,000 – $99,999 | 326 | 0.22% | 1,385 | 0.88% | 0.66% | |
| $100,000 – $199,999 | 153 | 0.10% | 486 | 0.26% | 0.17% | |
| $200,000 and above | 36 | 0.05% | 57 | 0.08% | 0.02% | |
| Delaware | All Taxpayers | 70,767 | 18.71% | 102,595 | 25.93% | 7.22% |
| Under $50,000 | 70,555 | 27.08% | 100,816 | 38.53% | 11.44% | |
| $50,000 – $74,999 | 165 | 0.31% | 1,534 | 2.69% | 2.38% | |
| $75,000 – $99,999 | 27 | 0.09% | 179 | 0.52% | 0.43% | |
| $100,000 – $199,999 | 17 | 0.06% | 62 | 0.18% | 0.12% | |
| $200,000 and above | 3 | 0.04% | 4 | 0.05% | 0.00% | |
| D.C. | All Taxpayers | 63,164 | 22.62% | 75,409 | 27.14% | 4.52% |
| Under $50,000 | 62,752 | 30.75% | 74,104 | 39.39% | 8.65% | |
| $50,000 – $74,999 | 335 | 1.05% | 1,050 | 2.88% | 1.82% | |
| $75,000 – $99,999 | 44 | 0.29% | 158 | 0.86% | 0.56% | |
| $100,000 – $199,999 | 28 | 0.15% | 87 | 0.37% | 0.22% | |
| $200,000 and above | 5 | 0.05% | 10 | 0.09% | 0.04% | |
| Florida | All Taxpayers | 1,839,705 | 24.53% | 2,743,058 | 33.56% | 9.03% |
| Under $50,000 | 1,833,894 | 32.39% | 2,701,568 | 45.28% | 12.89% | |
| $50,000 – $74,999 | 3,991 | 0.45% | 34,582 | 3.52% | 3.07% | |
| $75,000 – $99,999 | 925 | 0.23% | 4,720 | 0.91% | 0.69% | |
| $100,000 – $199,999 | 625 | 0.16% | 1,846 | 0.36% | 0.20% | |
| $200,000 and above | 270 | 0.17% | 342 | 0.17% | 0.00% | |
| Georgia | All Taxpayers | 905,281 | 24.89% | 1,339,715 | 35.42% | 10.52% |
| Under $50,000 | 902,605 | 34.09% | 1,317,598 | 49.21% | 15.12% | |
| $50,000 – $74,999 | 2,071 | 0.45% | 19,158 | 3.97% | 3.52% | |
| $75,000 – $99,999 | 352 | 0.15% | 2,277 | 0.85% | 0.69% | |
| $100,000 – $199,999 | 190 | 0.08% | 606 | 0.22% | 0.14% | |
| $200,000 and above | 63 | 0.08% | 76 | 0.09% | 0.01% | |
| Hawaii | All Taxpayers | 125,562 | 21.94% | 173,262 | 28.59% | 6.64% |
| Under $50,000 | 124,778 | 29.87% | 168,679 | 39.77% | 9.90% | |
| $50,000 – $74,999 | 646 | 0.85% | 3,986 | 4.79% | 3.94% | |
| $75,000 – $99,999 | 75 | 0.19% | 473 | 1.02% | 0.83% | |
| $100,000 – $199,999 | 58 | 0.18% | 111 | 0.27% | 0.09% | |
| $200,000 and above | 5 | 0.06% | 13 | 0.12% | 0.06% | |
| Idaho | All Taxpayers | 139,356 | 24.92% | 204,956 | 34.49% | 9.57% |
| Under $50,000 | 138,632 | 32.72% | 199,117 | 45.79% | 13.07% | |
| $50,000 – $74,999 | 628 | 0.85% | 5,219 | 6.34% | 5.49% | |
| $75,000 – $99,999 | 60 | 0.20% | 503 | 1.29% | 1.09% | |
| $100,000 – $199,999 | 29 | 0.12% | 107 | 0.36% | 0.24% | |
| $200,000 and above | 7 | 0.09% | 10 | 0.12% | 0.03% | |
| Illinois | All Taxpayers | 1,218,150 | 21.05% | 1,752,365 | 30.41% | 9.36% |
| Under $50,000 | 1,213,401 | 30.49% | 1,714,486 | 44.65% | 14.16% | |
| $50,000 – $74,999 | 3,849 | 0.47% | 33,213 | 4.03% | 3.56% | |
| $75,000 – $99,999 | 524 | 0.12% | 3,667 | 0.77% | 0.65% | |
| $100,000 – $199,999 | 297 | 0.07% | 897 | 0.19% | 0.12% | |
| $200,000 and above | 79 | 0.06% | 102 | 0.07% | 0.01% | |
| Indiana | All Taxpayers | 610,116 | 21.50% | 862,672 | 30.22% | 8.71% |
| Under $50,000 | 608,563 | 29.81% | 848,267 | 42.71% | 12.91% | |
| $50,000 – $74,999 | 1,268 | 0.30% | 12,891 | 3.04% | 2.74% | |
| $75,000 – $99,999 | 162 | 0.08% | 1,236 | 0.54% | 0.46% | |
| $100,000 – $199,999 | 102 | 0.07% | 252 | 0.14% | 0.07% | |
| $200,000 and above | 21 | 0.05% | 26 | 0.06% | 0.01% | |
| Iowa | All Taxpayers | 268,006 | 19.84% | 375,261 | 28.12% | 8.28% |
| Under $50,000 | 267,256 | 26.91% | 367,255 | 39.26% | 12.35% | |
| $50,000 – $74,999 | 624 | 0.31% | 7,252 | 3.54% | 3.24% | |
| $75,000 – $99,999 | 70 | 0.09% | 627 | 0.60% | 0.52% | |
| $100,000 – $199,999 | 46 | 0.08% | 118 | 0.16% | 0.08% | |
| $200,000 and above | 10 | 0.06% | 9 | 0.05% | -0.01% | |
| Kansas | All Taxpayers | 256,608 | 20.99% | 379,430 | 30.86% | 9.87% |
| Under $50,000 | 255,826 | 29.10% | 372,361 | 43.26% | 14.17% | |
| $50,000 – $74,999 | 641 | 0.37% | 6,338 | 3.61% | 3.25% | |
| $75,000 – $99,999 | 95 | 0.12% | 573 | 0.61% | 0.49% | |
| $100,000 – $199,999 | 35 | 0.05% | 146 | 0.19% | 0.13% | |
| $200,000 and above | 11 | 0.06% | 12 | 0.06% | 0.00% | |
| Kentucky | All Taxpayers | 431,155 | 24.68% | 571,899 | 32.54% | 7.86% |
| Under $50,000 | 430,339 | 32.25% | 564,959 | 43.91% | 11.67% | |
| $50,000 – $74,999 | 638 | 0.28% | 6,168 | 2.58% | 2.30% | |
| $75,000 – $99,999 | 90 | 0.10% | 611 | 0.52% | 0.42% | |
| $100,000 – $199,999 | 69 | 0.10% | 142 | 0.16% | 0.06% | |
| $200,000 and above | 19 | 0.09% | 19 | 0.08% | -0.01% | |
| Louisiana | All Taxpayers | 578,458 | 30.86% | 737,937 | 39.48% | 8.62% |
| Under $50,000 | 577,445 | 39.40% | 731,141 | 51.52% | 12.12% | |
| $50,000 – $74,999 | 774 | 0.36% | 5,916 | 2.72% | 2.37% | |
| $75,000 – $99,999 | 126 | 0.13% | 653 | 0.57% | 0.44% | |
| $100,000 – $199,999 | 82 | 0.11% | 189 | 0.20% | 0.09% | |
| $200,000 and above | 31 | 0.13% | 38 | 0.15% | 0.03% | |
| Maine | All Taxpayers | 126,714 | 20.92% | 173,810 | 28.09% | 7.16% |
| Under $50,000 | 126,360 | 27.51% | 171,039 | 38.14% | 10.62% | |
| $50,000 – $74,999 | 294 | 0.36% | 2,450 | 2.79% | 2.43% | |
| $75,000 – $99,999 | 40 | 0.12% | 248 | 0.59% | 0.47% | |
| $100,000 – $199,999 | 16 | 0.07% | 70 | 0.22% | 0.16% | |
| $200,000 and above | 4 | 0.05% | 3 | 0.03% | -0.02% | |
| Maryland | All Taxpayers | 478,553 | 18.67% | 670,826 | 25.45% | 6.78% |
| Under $50,000 | 475,256 | 28.21% | 649,837 | 39.94% | 11.73% | |
| $50,000 – $74,999 | 2,637 | 0.71% | 17,439 | 4.51% | 3.80% | |
| $75,000 – $99,999 | 449 | 0.21% | 2,878 | 1.17% | 0.96% | |
| $100,000 – $199,999 | 178 | 0.08% | 641 | 0.22% | 0.14% | |
| $200,000 and above | 33 | 0.05% | 31 | 0.04% | -0.01% | |
| Massachusetts | All Taxpayers | 495,293 | 15.93% | 720,415 | 23.53% | 7.61% |
| Under $50,000 | 492,651 | 24.31% | 701,257 | 36.49% | 12.18% | |
| $50,000 – $74,999 | 2,049 | 0.46% | 16,184 | 3.68% | 3.22% | |
| $75,000 – $99,999 | 346 | 0.14% | 2,253 | 0.82% | 0.68% | |
| $100,000 – $199,999 | 202 | 0.07% | 652 | 0.21% | 0.13% | |
| $200,000 and above | 45 | 0.04% | 69 | 0.06% | 0.02% | |
| Michigan | All Taxpayers | 952,906 | 20.63% | 1,370,049 | 30.04% | 9.41% |
| Under $50,000 | 949,747 | 30.01% | 1,342,723 | 43.74% | 13.73% | |
| $50,000 – $74,999 | 2,621 | 0.39% | 23,961 | 3.61% | 3.22% | |
| $75,000 – $99,999 | 343 | 0.09% | 2,713 | 0.69% | 0.60% | |
| $100,000 – $199,999 | 145 | 0.04% | 599 | 0.17% | 0.12% | |
| $200,000 and above | 50 | 0.06% | 53 | 0.07% | 0.00% | |
| Minnesota | All Taxpayers | 412,551 | 17.29% | 607,385 | 25.23% | 7.94% |
| Under $50,000 | 410,471 | 25.40% | 589,351 | 37.77% | 12.37% | |
| $50,000 – $74,999 | 1,740 | 0.47% | 15,823 | 4.22% | 3.75% | |
| $75,000 – $99,999 | 223 | 0.12% | 1,767 | 0.80% | 0.68% | |
| $100,000 – $199,999 | 98 | 0.06% | 399 | 0.20% | 0.14% | |
| $200,000 and above | 19 | 0.04% | 45 | 0.08% | 0.04% | |
| Mississippi | All Taxpayers | 382,989 | 32.64% | 490,921 | 42.10% | 9.47% |
| Under $50,000 | 382,425 | 40.10% | 486,876 | 53.15% | 13.05% | |
| $50,000 – $74,999 | 413 | 0.33% | 3,601 | 2.80% | 2.46% | |
| $75,000 – $99,999 | 66 | 0.13% | 331 | 0.53% | 0.39% | |
| $100,000 – $199,999 | 54 | 0.15% | 93 | 0.20% | 0.05% | |
| $200,000 and above | 31 | 0.28% | 20 | 0.17% | -0.11% | |
| Missouri | All Taxpayers | 581,238 | 22.66% | 804,161 | 31.10% | 8.44% |
| Under $50,000 | 579,809 | 30.52% | 791,730 | 42.84% | 12.32% | |
| $50,000 – $74,999 | 1,124 | 0.33% | 10,987 | 3.08% | 2.75% | |
| $75,000 – $99,999 | 162 | 0.10% | 1,129 | 0.61% | 0.51% | |
| $100,000 – $199,999 | 111 | 0.09% | 274 | 0.18% | 0.09% | |
| $200,000 and above | 32 | 0.08% | 41 | 0.10% | 0.02% | |
| Montana | All Taxpayers | 117,498 | 27.70% | 153,047 | 34.81% | 7.11% |
| Under $50,000 | 117,191 | 34.70% | 150,679 | 44.81% | 10.11% | |
| $50,000 – $74,999 | 267 | 0.53% | 2,106 | 3.79% | 3.26% | |
| $75,000 – $99,999 | 23 | 0.12% | 205 | 0.82% | 0.69% | |
| $100,000 – $199,999 | 11 | 0.08% | 55 | 0.32% | 0.24% | |
| $200,000 and above | 6 | 0.13% | 2 | 0.04% | -0.09% | |
| Nebraska | All Taxpayers | 170,847 | 21.12% | 243,159 | 30.06% | 8.94% |
| Under $50,000 | 170,303 | 28.37% | 237,879 | 41.27% | 12.90% | |
| $50,000 – $74,999 | 434 | 0.38% | 4,809 | 4.16% | 3.77% | |
| $75,000 – $99,999 | 61 | 0.13% | 373 | 0.63% | 0.50% | |
| $100,000 – $199,999 | 37 | 0.10% | 87 | 0.19% | 0.09% | |
| $200,000 and above | 12 | 0.11% | 11 | 0.09% | -0.02% | |
| Nevada | All Taxpayers | 188,938 | 19.81% | 308,810 | 28.26% | 8.46% |
| Under $50,000 | 187,863 | 27.17% | 299,722 | 39.82% | 12.65% | |
| $50,000 – $74,999 | 771 | 0.57% | 7,755 | 4.90% | 4.33% | |
| $75,000 – $99,999 | 151 | 0.25% | 911 | 1.12% | 0.87% | |
| $100,000 – $199,999 | 96 | 0.20% | 321 | 0.43% | 0.23% | |
| $200,000 and above | 57 | 0.31% | 101 | 0.39% | 0.08% | |
| New Hampshire | All Taxpayers | 103,112 | 16.39% | 151,959 | 23.63% | 7.24% |
| Under $50,000 | 102,710 | 24.55% | 148,016 | 36.04% | 11.49% | |
| $50,000 – $74,999 | 313 | 0.33% | 3,438 | 3.51% | 3.19% | |
| $75,000 – $99,999 | 49 | 0.10% | 409 | 0.68% | 0.58% | |
| $100,000 – $199,999 | 35 | 0.07% | 88 | 0.15% | 0.08% | |
| $200,000 and above | 5 | 0.03% | 8 | 0.05% | 0.02% | |
| New Jersey | All Taxpayers | 762,774 | 18.75% | 1,091,990 | 26.59% | 7.83% |
| Under $50,000 | 758,409 | 29.06% | 1,063,675 | 42.20% | 13.14% | |
| $50,000 – $74,999 | 3,453 | 0.61% | 23,686 | 4.17% | 3.56% | |
| $75,000 – $99,999 | 532 | 0.15% | 3,696 | 0.98% | 0.82% | |
| $100,000 – $199,999 | 309 | 0.08% | 857 | 0.18% | 0.10% | |
| $200,000 and above | 71 | 0.05% | 76 | 0.05% | 0.00% | |
| New Mexico | All Taxpayers | 226,640 | 31.14% | 305,699 | 36.96% | 5.81% |
| Under $50,000 | 226,236 | 38.64% | 302,287 | 48.38% | 9.74% | |
| $50,000 – $74,999 | 316 | 0.41% | 3,025 | 3.11% | 2.70% | |
| $75,000 – $99,999 | 54 | 0.16% | 292 | 0.59% | 0.43% | |
| $100,000 – $199,999 | 30 | 0.11% | 85 | 0.19% | 0.07% | |
| $200,000 and above | 4 | 0.07% | 10 | 0.09% | 0.02% | |
| New York | All Taxpayers | 1,969,116 | 22.96% | 2,695,558 | 31.25% | 8.29% |
| Under $50,000 | 1,959,696 | 32.33% | 2,640,181 | 44.95% | 12.62% | |
| $50,000 – $74,999 | 7,248 | 0.65% | 46,460 | 4.06% | 3.40% | |
| $75,000 – $99,999 | 1,322 | 0.23% | 6,807 | 1.05% | 0.82% | |
| $100,000 – $199,999 | 672 | 0.11% | 1,876 | 0.27% | 0.15% | |
| $200,000 and above | 178 | 0.08% | 234 | 0.09% | 0.02% | |
| North Carolina | All Taxpayers | 846,661 | 23.28% | 1,282,442 | 34.02% | 10.74% |
| Under $50,000 | 844,282 | 31.35% | 1,265,050 | 46.56% | 15.22% | |
| $50,000 – $74,999 | 1,852 | 0.39% | 15,208 | 3.13% | 2.74% | |
| $75,000 – $99,999 | 314 | 0.14% | 1,686 | 0.64% | 0.50% | |
| $100,000 – $199,999 | 167 | 0.09% | 456 | 0.19% | 0.11% | |
| $200,000 and above | 46 | 0.08% | 42 | 0.06% | -0.01% | |
| North Dakota | All Taxpayers | 67,347 | 22.24% | 87,831 | 28.79% | 6.55% |
| Under $50,000 | 67,202 | 28.66% | 86,483 | 38.74% | 10.08% | |
| $50,000 – $74,999 | 117 | 0.29% | 1,232 | 2.78% | 2.50% | |
| $75,000 – $99,999 | 16 | 0.11% | 92 | 0.45% | 0.34% | |
| $100,000 – $199,999 | 10 | 0.10% | 20 | 0.15% | 0.05% | |
| $200,000 and above | 2 | 0.07% | 4 | 0.10% | 0.04% | |
| Ohio | All Taxpayers | 1,101,725 | 19.76% | 1,523,479 | 27.97% | 8.21% |
| Under $50,000 | 1,098,465 | 26.55% | 1,496,964 | 38.40% | 11.84% | |
| $50,000 – $74,999 | 2,681 | 0.34% | 23,483 | 3.04% | 2.70% | |
| $75,000 – $99,999 | 326 | 0.10% | 2,402 | 0.61% | 0.51% | |
| $100,000 – $199,999 | 198 | 0.08% | 576 | 0.19% | 0.11% | |
| $200,000 and above | 55 | 0.07% | 54 | 0.07% | 0.00% | |
| Oklahoma | All Taxpayers | 393,654 | 26.87% | 526,574 | 35.67% | 8.81% |
| Under $50,000 | 392,895 | 34.56% | 520,025 | 47.01% | 12.45% | |
| $50,000 – $74,999 | 599 | 0.33% | 5,862 | 3.11% | 2.78% | |
| $75,000 – $99,999 | 92 | 0.12% | 514 | 0.56% | 0.44% | |
| $100,000 – $199,999 | 54 | 0.09% | 162 | 0.23% | 0.14% | |
| $200,000 and above | 14 | 0.08% | 11 | 0.05% | -0.02% | |
| Oregon | All Taxpayers | 344,607 | 22.06% | 492,984 | 30.73% | 8.67% |
| Under $50,000 | 342,837 | 30.42% | 481,349 | 42.93% | 12.51% | |
| $50,000 – $74,999 | 1,455 | 0.66% | 10,216 | 4.46% | 3.79% | |
| $75,000 – $99,999 | 213 | 0.21% | 1,097 | 0.91% | 0.70% | |
| $100,000 – $199,999 | 86 | 0.10% | 293 | 0.28% | 0.18% | |
| $200,000 and above | 16 | 0.06% | 29 | 0.10% | 0.04% | |
| Pennsylvania | All Taxpayers | 1,220,509 | 21.02% | 1,684,203 | 28.98% | 7.96% |
| Under $50,000 | 1,216,760 | 29.04% | 1,655,395 | 41.17% | 12.12% | |
| $50,000 – $74,999 | 3,063 | 0.38% | 25,312 | 3.06% | 2.68% | |
| $75,000 – $99,999 | 407 | 0.11% | 2,731 | 0.61% | 0.50% | |
| $100,000 – $199,999 | 212 | 0.07% | 699 | 0.17% | 0.11% | |
| $200,000 and above | 67 | 0.06% | 66 | 0.06% | -0.01% | |
| Rhode Island | All Taxpayers | 96,059 | 19.43% | 131,612 | 26.31% | 6.88% |
| Under $50,000 | 95,749 | 27.27% | 129,096 | 38.38% | 11.11% | |
| $50,000 – $74,999 | 247 | 0.36% | 2,213 | 3.10% | 2.74% | |
| $75,000 – $99,999 | 38 | 0.11% | 241 | 0.58% | 0.47% | |
| $100,000 – $199,999 | 20 | 0.07% | 57 | 0.14% | 0.08% | |
| $200,000 and above | 5 | 0.06% | 5 | 0.05% | -0.01% | |
| South Carolina | All Taxpayers | 467,074 | 25.91% | 655,493 | 35.54% | 9.62% |
| Under $50,000 | 465,951 | 33.60% | 647,225 | 47.20% | 13.59% | |
| $50,000 – $74,999 | 872 | 0.40% | 7,196 | 3.18% | 2.78% | |
| $75,000 – $99,999 | 164 | 0.17% | 819 | 0.68% | 0.51% | |
| $100,000 – $199,999 | 71 | 0.09% | 232 | 0.23% | 0.14% | |
| $200,000 and above | 16 | 0.07% | 21 | 0.08% | 0.01% | |
| South Dakota | All Taxpayers | 85,159 | 23.98% | 115,767 | 31.96% | 7.98% |
| Under $50,000 | 84,991 | 30.71% | 113,680 | 42.20% | 11.48% | |
| $50,000 – $74,999 | 143 | 0.31% | 1,938 | 3.82% | 3.51% | |
| $75,000 – $99,999 | 9 | 0.06% | 129 | 0.59% | 0.54% | |
| $100,000 – $199,999 | 12 | 0.10% | 19 | 0.13% | 0.02% | |
| $200,000 and above | 4 | 0.10% | 1 | 0.02% | -0.08% | |
| Tennessee | All Taxpayers | 630,749 | 24.57% | 871,917 | 33.45% | 8.88% |
| Under $50,000 | 629,603 | 31.96% | 862,306 | 44.96% | 13.00% | |
| $50,000 – $74,999 | 831 | 0.26% | 8,463 | 2.51% | 2.25% | |
| $75,000 – $99,999 | 173 | 0.13% | 867 | 0.52% | 0.39% | |
| $100,000 – $199,999 | 108 | 0.10% | 245 | 0.17% | 0.08% | |
| $200,000 and above | 34 | 0.09% | 36 | 0.08% | -0.01% | |
| Texas | All Taxpayers | 2,441,164 | 26.97% | 3,516,155 | 37.28% | 10.31% |
| Under $50,000 | 2,436,466 | 36.26% | 3,471,333 | 50.91% | 14.65% | |
| $50,000 – $74,999 | 3,475 | 0.33% | 39,142 | 3.49% | 3.16% | |
| $75,000 – $99,999 | 705 | 0.13% | 4,273 | 0.67% | 0.54% | |
| $100,000 – $199,999 | 397 | 0.07% | 1,272 | 0.19% | 0.12% | |
| $200,000 and above | 121 | 0.07% | 135 | 0.07% | 0.00% | |
| Utah | All Taxpayers | 230,450 | 24.47% | 349,911 | 35.12% | 10.65% |
| Under $50,000 | 227,277 | 33.06% | 329,922 | 47.05% | 13.99% | |
| $50,000 – $74,999 | 2,805 | 2.07% | 17,484 | 11.95% | 9.87% | |
| $75,000 – $99,999 | 270 | 0.45% | 2,140 | 2.89% | 2.44% | |
| $100,000 – $199,999 | 79 | 0.18% | 342 | 0.58% | 0.41% | |
| $200,000 and above | 19 | 0.14% | 23 | 0.14% | 0.01% | |
| Vermont | All Taxpayers | 59,474 | 19.87% | 83,061 | 27.12% | 7.25% |
| Under $50,000 | 59,263 | 26.85% | 81,644 | 37.64% | 10.79% | |
| $50,000 – $74,999 | 177 | 0.43% | 1,221 | 2.81% | 2.39% | |
| $75,000 – $99,999 | 18 | 0.10% | 160 | 0.71% | 0.61% | |
| $100,000 – $199,999 | 14 | 0.09% | 33 | 0.18% | 0.09% | |
| $200,000 and above | 2 | 0.04% | 3 | 0.06% | 0.02% | |
| Virginia | All Taxpayers | 637,123 | 19.09% | 910,930 | 26.09% | 7.01% |
| Under $50,000 | 634,490 | 28.06% | 890,369 | 39.88% | 11.81% | |
| $50,000 – $74,999 | 2,063 | 0.44% | 17,501 | 3.50% | 3.07% | |
| $75,000 – $99,999 | 335 | 0.13% | 2,396 | 0.79% | 0.65% | |
| $100,000 – $199,999 | 183 | 0.07% | 619 | 0.18% | 0.11% | |
| $200,000 and above | 52 | 0.07% | 45 | 0.04% | -0.02% | |
| Washington | All Taxpayers | 514,965 | 18.57% | 759,343 | 26.54% | 7.97% |
| Under $50,000 | 512,165 | 27.29% | 739,654 | 39.60% | 12.30% | |
| $50,000 – $74,999 | 2,215 | 0.52% | 16,962 | 3.90% | 3.38% | |
| $75,000 – $99,999 | 314 | 0.14% | 2,066 | 0.82% | 0.67% | |
| $100,000 – $199,999 | 198 | 0.10% | 598 | 0.25% | 0.15% | |
| $200,000 and above | 73 | 0.12% | 63 | 0.09% | -0.02% | |
| West Virginia | All Taxpayers | 195,111 | 26.02% | 245,431 | 32.82% | 6.80% |
| Under $50,000 | 194,927 | 32.94% | 243,591 | 43.39% | 10.45% | |
| $50,000 – $74,999 | 143 | 0.15% | 1,639 | 1.60% | 1.45% | |
| $75,000 – $99,999 | 26 | 0.07% | 159 | 0.34% | 0.27% | |
| $100,000 – $199,999 | 15 | 0.07% | 39 | 0.13% | 0.06% | |
| $200,000 and above | 0 | 0.00% | 3 | 0.04% | 0.04% | |
| Wisconsin | All Taxpayers | 468,210 | 18.03% | 693,563 | 26.46% | 8.43% |
| Under $50,000 | 466,313 | 25.60% | 677,131 | 38.34% | 12.74% | |
| $50,000 – $74,999 | 1,579 | 0.38% | 14,616 | 3.54% | 3.16% | |
| $75,000 – $99,999 | 198 | 0.10% | 1,471 | 0.64% | 0.54% | |
| $100,000 – $199,999 | 102 | 0.08% | 322 | 0.19% | 0.11% | |
| $200,000 and above | 18 | 0.05% | 23 | 0.05% | 0.01% | |
| Wyoming | All Taxpayers | 54,414 | 23.14% | 69,670 | 28.59% | 5.45% |
| Under $50,000 | 54,280 | 31.26% | 68,367 | 40.61% | 9.35% | |
| $50,000 – $74,999 | 104 | 0.30% | 1,158 | 3.06% | 2.76% | |
| $75,000 – $99,999 | 13 | 0.09% | 114 | 0.58% | 0.48% | |
| $100,000 – $199,999 | 11 | 0.12% | 28 | 0.21% | 0.09% | |
| $200,000 and above | 6 | 0.17% | 3 | 0.07% | -0.10% |
Source: Internal Revenue Service and Tax Foundation calculations
Note: All figures are from the IRS Individual Income TaxAn individual income tax (or personal income tax) is levied on the wages, salaries, investments, or other forms of income an individual or household earns. The U.S. imposes a progressive income tax where rates increase with income. The Federal Income Tax was established in 1913 with the ratification of the 16th Amendment. Though barely 100 years old, individual income taxes are the largest source of tax revenue in the U.S. Data System for all returns filed in that year. More returns were filed for these tax years than appear in the table, due to many factors such as late filing. Unfortunately, the IRS does not re-release state-by-state data to reflect more updated information about income earned in various years. For this reason, the number of nonpaying returns shown in the table nationwide for 2000 is 29.7 million, while in more updated IRS data the is given as 32.5 million. As a result, some rates in this table may differ from previously published tables. However, for most tax rates and percentages, these effects are likely to be small.
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