Fiscal Fact No. 68
Across the nation, nearly every income group in every state has had its federal income 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. These new data let us see how the recent tax cuts have played out along the income spectrum within each state, as well as which states have benefited the most.
Because states have different demographic profiles, some states? taxpayers benefit more than others from the tax cuts. For example, states with more children benefit more every year from the $1,000 per 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. , and because people with incomes over $110,000 are denied the full deduction, states with more children in low- and middle-income households benefit even more from that part of the Bush tax plan.
Similarly, reductions in the top tax rates give more relief to states with many high-income earners; the new 10-percent bracket gives more relief to states with many low- and middle-income earners; and the marriage penaltyA marriage penalty is when a household’s overall tax bill increases due to a couple marrying and filing taxes jointly. A marriage penalty typically occurs when two individuals with similar incomes marry; this is true for both high- and low-income couples. relief benefits states with more middle-income married couples.
There are several ways to measure tax cuts, two of which are used in the table below. The table shows the tax payment in dollars for the average tax return within each income range, using the effective tax rates for those groups in 2000 and in 2004. Of course, one way to quantify the tax cut is to simply subtract 2004?s tax payment from 2000?s. The other is to compute the percentage drop. Both are valid, accurate ways of expressing how much money recent tax changes have saved taxpayers.
States with Largest and Smallest Tax Savings
The states that realized the biggest tax savings as a dollar amount were high-income states: Massachusetts, Washington, Connecticut, California, and New Hampshire. At the other end of the spectrum, the bottom five states were New Mexico, North Dakota, Montana, West Virginia, and Hawaii.
The highest dollar-value savings for any income group went to the $200,000 and above group in Wyoming, which had its tax burden for the average income earner reduced by about $57,000. Naturally, in each state the average dollar savings over the four-year period is greatest for those who were earning and paying the most in 2000.
In terms of percentage savings, the big winners were Mississippi, Louisiana, Washington, Idaho, and Colorado. The smallest percentage cuts were in New Mexico, Maryland, Rhode Island, New York, and Nevada.
The income group with the highest percentage drop in tax payment was Utah?s lowest income group. Because Utah ranks high in terms of percentage of children in its population, it benefited disproportionately from the expansion of the child tax credit. In fact, the refundable child tax credit was expanded so much that it pushed many taxpayers off the tax rolls entirely. Utah saw one of the largest increases in non-payer status.
Conclusion
By defining the benefits of tax cuts in different ways, we end up with substantially different conclusions about who benefited most from the 2001 and 2003 federal income tax cuts. When we define the tax cut in dollar terms, high-income earners and high-income states benefit the most. But when we ask who received a bigger tax cut in percentage terms, low-income earners and low-income states benefit the most.
However, some states fared better than others no matter which way the tax cuts are measured. Washington, Colorado, and California were huge beneficiaries, but New Mexico, Hawaii, and North Dakota received the least tax relief by both measures.
Table 1: Federal Income Taxes Fell in Nearly Every State for Every Income Group between 2000 and 2004
| State | Income Group (AGI) | Tax Payment by the Average Earner in this Income Group* | Tax Cut ($) | Percentage Change in Tax Burden | |
| In 2000 | In 2004 | ||||
| United States | All Taxpayers | $7,261 | $5,591 | $1,670 | -23.00% |
| Under $50,000 | $1,090 | $825 | $265 | -24.30% | |
| $50,000 – $74,999 | $6,793 | $5,095 | $1,698 | -25.00% | |
| $75,000 – $99,999 | $11,639 | $8,437 | $3,202 | -27.50% | |
| $100,000 – $199,999 | $22,802 | $17,947 | $4,855 | -21.30% | |
| $200,000 and above | $161,068 | $136,582 | $24,486 | -15.20% | |
| Alabama | All Taxpayers | $4,503 | $3,454 | $1,049 | -23.30% |
| Under $50,000 | $661 | $635 | $26 | -3.90% | |
| $50,000 – $74,999 | $6,615 | $4,953 | $1,662 | -25.10% | |
| $75,000 – $99,999 | $11,690 | $8,516 | $3,174 | -27.10% | |
| $100,000 – $199,999 | $22,645 | $18,058 | $4,587 | -20.30% | |
| $200,000 and above | $133,756 | $112,417 | $21,339 | -16.00% | |
| Alaska | All Taxpayers | $6,139 | $4,835 | $1,304 | -21.20% |
| Under $50,000 | $1,273 | $887 | $386 | -30.30% | |
| $50,000 – $74,999 | $7,290 | $5,582 | $1,708 | -23.40% | |
| $75,000 – $99,999 | $12,500 | $9,204 | $3,296 | -26.40% | |
| $100,000 – $199,999 | $23,724 | $19,075 | $4,649 | -19.60% | |
| $200,000 and above | $119,406 | $102,595 | $16,811 | -14.10% | |
| Arizona | All Taxpayers | $6,290 | $4,886 | $1,404 | -22.30% |
| Under $50,000 | $1,057 | $788 | $269 | -25.50% | |
| $50,000 – $74,999 | $6,592 | $4,951 | $1,641 | -24.90% | |
| $75,000 – $99,999 | $11,454 | $8,396 | $3,058 | -26.70% | |
| $100,000 – $199,999 | $22,532 | $17,889 | $4,643 | -20.60% | |
| $200,000 and above | $138,547 | $116,033 | $22,514 | -16.30% | |
| Arkansas | All Taxpayers | $4,114 | $3,044 | $1,070 | -26.00% |
| Under $50,000 | $734 | $647 | $87 | -11.90% | |
| $50,000 – $74,999 | $6,543 | $4,870 | $1,673 | -25.60% | |
| $75,000 – $99,999 | $11,730 | $8,473 | $3,257 | -27.80% | |
| $100,000 – $199,999 | $22,815 | $18,014 | $4,801 | -21.00% | |
| $200,000 and above | $143,953 | $114,826 | $29,127 | -20.20% | |
| California | All Taxpayers | $9,569 | $7,123 | $2,446 | -25.60% |
| Under $50,000 | $1,011 | $775 | $236 | -23.30% | |
| $50,000 – $74,999 | $6,717 | $4,948 | $1,769 | -26.30% | |
| $75,000 – $99,999 | $11,175 | $8,101 | $3,074 | -27.50% | |
| $100,000 – $199,999 | $22,004 | $17,114 | $4,890 | -22.20% | |
| $200,000 and above | $186,693 | $155,586 | $31,107 | -16.70% | |
| Colorado | All Taxpayers | $8,526 | $6,272 | $2,254 | -26.40% |
| Under $50,000 | $1,335 | $931 | $404 | -30.20% | |
| $50,000 – $74,999 | $6,747 | $5,046 | $1,701 | -25.20% | |
| $75,000 – $99,999 | $11,527 | $8,337 | $3,190 | -27.70% | |
| $100,000 – $199,999 | $22,979 | $18,044 | $4,935 | -21.50% | |
| $200,000 and above | $158,018 | $126,543 | $31,475 | -19.90% | |
| Connecticut | All Taxpayers | $13,425 | $10,934 | $2,491 | -18.60% |
| Under $50,000 | $1,499 | $1,084 | $415 | -27.60% | |
| $50,000 – $74,999 | $7,147 | $5,535 | $1,612 | -22.50% | |
| $75,000 – $99,999 | $11,686 | $8,550 | $3,136 | -26.80% | |
| $100,000 – $199,999 | $23,076 | $18,137 | $4,939 | -21.40% | |
| $200,000 and above | $203,405 | $174,769 | $28,636 | -14.10% | |
| Delaware | All Taxpayers | $7,157 | $5,713 | $1,444 | -20.20% |
| Under $50,000 | $1,296 | $974 | $322 | -24.90% | |
| $50,000 – $74,999 | $6,992 | $5,442 | $1,550 | -22.20% | |
| $75,000 – $99,999 | $11,778 | $8,693 | $3,085 | -26.20% | |
| $100,000 – $199,999 | $22,817 | $18,127 | $4,690 | -20.60% | |
| $200,000 and above | $144,806 | $122,021 | $22,785 | -15.70% | |
| D.C. | All Taxpayers | $9,833 | $8,326 | $1,507 | -15.30% |
| Under $50,000 | $1,228 | $1,127 | $101 | -8.20% | |
| $50,000 – $74,999 | $8,078 | $6,592 | $1,486 | -18.40% | |
| $75,000 – $99,999 | $13,320 | $10,966 | $2,354 | -17.70% | |
| $100,000 – $199,999 | $24,669 | $20,468 | $4,201 | -17.00% | |
| $200,000 and above | $165,473 | $143,863 | $21,610 | -13.10% | |
| Florida | All Taxpayers | $7,229 | $5,781 | $1,448 | -20.00% |
| Under $50,000 | $1,001 | $796 | $205 | -20.50% | |
| $50,000 – $74,999 | $7,075 | $5,214 | $1,861 | -26.30% | |
| $75,000 – $99,999 | $12,391 | $8,809 | $3,582 | -28.90% | |
| $100,000 – $199,999 | $24,288 | $18,835 | $5,453 | -22.40% | |
| $200,000 and above | $175,327 | $148,441 | $26,886 | -15.30% | |
| Georgia | All Taxpayers | $6,403 | $4,743 | $1,660 | -25.90% |
| Under $50,000 | $879 | $703 | $176 | -20.10% | |
| $50,000 – $74,999 | $6,633 | $4,916 | $1,717 | -25.90% | |
| $75,000 – $99,999 | $11,388 | $8,221 | $3,167 | -27.80% | |
| $100,000 – $199,999 | $22,508 | $17,733 | $4,775 | -21.20% | |
| $200,000 and above | $137,496 | $115,052 | $22,444 | -16.30% | |
| Hawaii | All Taxpayers | $5,274 | $4,326 | $948 | -18.00% |
| Under $50,000 | $1,228 | $938 | $290 | -23.60% | |
| $50,000 – $74,999 | $6,418 | $5,052 | $1,366 | -21.30% | |
| $75,000 – $99,999 | $10,908 | $8,260 | $2,648 | -24.30% | |
| $100,000 – $199,999 | $21,251 | $17,091 | $4,160 | -19.60% | |
| $200,000 and above | $115,731 | $102,285 | $13,446 | -11.60% | |
| Idaho | All Taxpayers | $4,965 | $3,603 | $1,362 | -27.40% |
| Under $50,000 | $941 | $666 | $275 | -29.20% | |
| $50,000 – $74,999 | $5,941 | $4,315 | $1,626 | -27.40% | |
| $75,000 – $99,999 | $10,815 | $7,723 | $3,092 | -28.60% | |
| $100,000 – $199,999 | $21,684 | $16,946 | $4,738 | -21.90% | |
| $200,000 and above | $142,635 | $120,132 | $22,503 | -15.80% | |
| Illinois | All Taxpayers | $8,313 | $6,451 | $1,862 | -22.40% |
| Under $50,000 | $1,211 | $871 | $340 | -28.10% | |
| $50,000 – $74,999 | $6,994 | $5,243 | $1,751 | -25.00% | |
| $75,000 – $99,999 | $11,848 | $8,573 | $3,275 | -27.60% | |
| $100,000 – $199,999 | $23,261 | $18,343 | $4,918 | -21.10% | |
| $200,000 and above | $160,364 | $136,178 | $24,186 | -15.10% | |
| Indiana | All Taxpayers | $5,561 | $4,220 | $1,341 | -24.10% |
| Under $50,000 | $1,198 | $838 | $360 | -30.10% | |
| $50,000 – $74,999 | $6,680 | $5,010 | $1,670 | -25.00% | |
| $75,000 – $99,999 | $11,761 | $8,490 | $3,271 | -27.80% | |
| $100,000 – $199,999 | $22,527 | $17,877 | $4,650 | -20.60% | |
| $200,000 and above | $133,373 | $114,142 | $19,231 | -14.40% | |
| Iowa | All Taxpayers | $4,927 | $3,792 | $1,135 | -23.00% |
| Under $50,000 | $1,254 | $878 | $376 | -30.00% | |
| $50,000 – $74,999 | $6,374 | $4,667 | $1,707 | -26.80% | |
| $75,000 – $99,999 | $11,436 | $8,059 | $3,377 | -29.50% | |
| $100,000 – $199,999 | $22,366 | $17,488 | $4,878 | -21.80% | |
| $200,000 and above | $119,368 | $102,684 | $16,684 | -14.00% | |
| Kansas | All Taxpayers | $5,922 | $4,475 | $1,447 | -24.40% |
| Under $50,000 | $1,181 | $802 | $379 | -32.10% | |
| $50,000 – $74,999 | $6,572 | $4,827 | $1,745 | -26.60% | |
| $75,000 – $99,999 | $11,586 | $8,255 | $3,331 | -28.70% | |
| $100,000 – $199,999 | $22,513 | $17,718 | $4,795 | -21.30% | |
| $200,000 and above | $132,573 | $114,179 | $18,394 | -13.90% | |
| Kentucky | All Taxpayers | $4,629 | $3,528 | $1,101 | -23.80% |
| Under $50,000 | $989 | $767 | $222 | -22.40% | |
| $50,000 – $74,999 | $6,484 | $4,858 | $1,626 | -25.10% | |
| $75,000 – $99,999 | $11,362 | $8,200 | $3,162 | -27.80% | |
| $100,000 – $199,999 | $22,251 | $17,546 | $4,705 | -21.10% | |
| $200,000 and above | $123,317 | $107,017 | $16,300 | -13.20% | |
| Louisiana | All Taxpayers | $4,400 | $3,144 | $1,256 | -28.60% |
| Under $50,000 | $545 | $610 | ($65) | 12.00% | |
| $50,000 – $74,999 | $6,799 | $5,022 | $1,777 | -26.10% | |
| $75,000 – $99,999 | $12,165 | $8,726 | $3,439 | -28.30% | |
| $100,000 – $199,999 | $23,662 | $18,515 | $5,147 | -21.80% | |
| $200,000 and above | $129,831 | $113,026 | $16,805 | -12.90% | |
| Maine | All Taxpayers | $4,996 | $3,831 | $1,165 | -23.30% |
| Under $50,000 | $1,220 | $910 | $310 | -25.40% | |
| $50,000 – $74,999 | $6,400 | $4,819 | $1,581 | -24.70% | |
| $75,000 – $99,999 | $11,285 | $8,104 | $3,181 | -28.20% | |
| $100,000 – $199,999 | $22,451 | $17,542 | $4,909 | -21.90% | |
| $200,000 and above | $128,345 | $113,928 | $14,417 | -11.20% | |
| Maryland | All Taxpayers | $7,958 | $6,589 | $1,369 | -17.20% |
| Under $50,000 | $1,244 | $938 | $306 | -24.60% | |
| $50,000 – $74,999 | $6,619 | $5,186 | $1,433 | -21.60% | |
| $75,000 – $99,999 | $10,885 | $8,252 | $2,633 | -24.20% | |
| $100,000 – $199,999 | $21,668 | $17,270 | $4,398 | -20.30% | |
| $200,000 and above | $135,787 | $120,063 | $15,724 | -11.60% | |
| Massachusetts | All Taxpayers | $11,579 | $8,900 | $2,679 | -23.10% |
| Under $50,000 | $1,595 | $1,165 | $430 | -27.00% | |
| $50,000 – $74,999 | $7,200 | $5,571 | $1,629 | -22.60% | |
| $75,000 – $99,999 | $11,806 | $8,596 | $3,210 | -27.20% | |
| $100,000 – $199,999 | $23,327 | $18,268 | $5,059 | -21.70% | |
| $200,000 and above | $185,680 | $159,561 | $26,119 | -14.10% | |
| Michigan | All Taxpayers | $6,667 | $5,054 | $1,613 | -24.20% |
| Under $50,000 | $1,208 | $858 | $350 | -29.00% | |
| $50,000 – $74,999 | $6,883 | $5,119 | $1,764 | -25.60% | |
| $75,000 – $99,999 | $11,760 | $8,452 | $3,308 | -28.10% | |
| $100,000 – $199,999 | $22,452 | $17,670 | $4,782 | -21.30% | |
| $200,000 and above | $131,935 | $114,393 | $17,542 | -13.30% | |
| Minnesota | All Taxpayers | $7,269 | $5,804 | $1,465 | -20.10% |
| Under $50,000 | $1,425 | $1,019 | $406 | -28.40% | |
| $50,000 – $74,999 | $6,473 | $4,895 | $1,578 | -24.40% | |
| $75,000 – $99,999 | $11,106 | $7,975 | $3,131 | -28.20% | |
| $100,000 – $199,999 | $22,029 | $17,357 | $4,672 | -21.20% | |
| $200,000 and above | $139,725 | $123,021 | $16,704 | -12.00% | |
| Mississippi | All Taxpayers | $3,355 | $2,290 | $1,065 | -31.80% |
| Under $50,000 | $415 | $537 | ($122) | 29.30% | |
| $50,000 – $74,999 | $6,526 | $4,824 | $1,702 | -26.10% | |
| $75,000 – $99,999 | $11,674 | $8,417 | $3,257 | -27.90% | |
| $100,000 – $199,999 | $22,537 | $17,905 | $4,632 | -20.60% | |
| $200,000 and above | $127,737 | $109,578 | $18,159 | -14.20% | |
| Missouri | All Taxpayers | $5,689 | $4,262 | $1,427 | -25.10% |
| Under $50,000 | $1,095 | $822 | $273 | -25.00% | |
| $50,000 – $74,999 | $6,678 | $4,966 | $1,712 | -25.60% | |
| $75,000 – $99,999 | $11,667 | $8,383 | $3,284 | -28.20% | |
| $100,000 – $199,999 | $22,651 | $17,828 | $4,823 | -21.30% | |
| $200,000 and above | $145,383 | $122,346 | $23,037 | -15.80% | |
| Montana | All Taxpayers | $3,900 | $3,039 | $861 | -22.10% |
| Under $50,000 | $881 | $702 | $179 | -20.40% | |
| $50,000 – $74,999 | $6,199 | $4,578 | $1,621 | -26.10% | |
| $75,000 – $99,999 | $11,296 | $8,021 | $3,275 | -29.00% | |
| $100,000 – $199,999 | $22,430 | $17,504 | $4,926 | -22.00% | |
| $200,000 and above | $117,762 | $103,175 | $14,587 | -12.40% | |
| Nebraska | All Taxpayers | $5,444 | $4,123 | $1,321 | -24.30% |
| Under $50,000 | $1,185 | $826 | $359 | -30.30% | |
| $50,000 – $74,999 | $6,342 | $4,602 | $1,740 | -27.40% | |
| $75,000 – $99,999 | $11,273 | $7,943 | $3,330 | -29.50% | |
| $100,000 – $199,999 | $22,051 | $17,219 | $4,832 | -21.90% | |
| $200,000 and above | $149,969 | $131,054 | $18,915 | -12.60% | |
| Nevada | All Taxpayers | $7,993 | $6,557 | $1,436 | -18.00% |
| Under $50,000 | $1,308 | $940 | $368 | -28.20% | |
| $50,000 – $74,999 | $6,751 | $5,035 | $1,716 | -25.40% | |
| $75,000 – $99,999 | $11,743 | $8,483 | $3,260 | -27.80% | |
| $100,000 – $199,999 | $22,913 | $17,740 | $5,173 | -22.60% | |
| $200,000 and above | $217,264 | $183,458 | $33,806 | -15.60% | |
| New Hampshire | All Taxpayers | $8,884 | $6,612 | $2,272 | -25.60% |
| Under $50,000 | $1,506 | $1,078 | $428 | -28.40% | |
| $50,000 – $74,999 | $6,919 | $5,119 | $1,800 | -26.00% | |
| $75,000 – $99,999 | $12,023 | $8,475 | $3,548 | -29.50% | |
| $100,000 – $199,999 | $23,832 | $18,483 | $5,349 | -22.40% | |
| $200,000 and above | $162,767 | $137,077 | $25,690 | -15.80% | |
| New Jersey | All Taxpayers | $10,741 | $8,549 | $2,192 | -20.40% |
| Under $50,000 | $1,289 | $950 | $339 | -26.30% | |
| $50,000 – $74,999 | $7,140 | $5,470 | $1,670 | -23.40% | |
| $75,000 – $99,999 | $11,689 | $8,567 | $3,122 | -26.70% | |
| $100,000 – $199,999 | $22,984 | $18,209 | $4,775 | -20.80% | |
| $200,000 and above | $158,758 | $136,273 | $22,485 | -14.20% | |
| New Mexico | All Taxpayers | $3,298 | $2,853 | $445 | -13.50% |
| Under $50,000 | $656 | $658 | ($2) | 0.30% | |
| $50,000 – $74,999 | $6,602 | $5,115 | $1,487 | -22.50% | |
| $75,000 – $99,999 | $11,696 | $8,777 | $2,919 | -25.00% | |
| $100,000 – $199,999 | $22,388 | $18,183 | $4,205 | -18.80% | |
| $200,000 and above | $101,853 | $88,446 | $13,407 | -13.20% | |
| New York | All Taxpayers | $9,149 | $7,499 | $1,650 | -18.00% |
| Under $50,000 | $1,072 | $887 | $185 | -17.30% | |
| $50,000 – $74,999 | $6,994 | $5,426 | $1,568 | -22.40% | |
| $75,000 – $99,999 | $11,652 | $8,723 | $2,929 | -25.10% | |
| $100,000 – $199,999 | $22,809 | $18,282 | $4,527 | -19.80% | |
| $200,000 and above | $188,939 | $161,436 | $27,503 | -14.60% | |
| North Carolina | All Taxpayers | $5,510 | $4,159 | $1,351 | -24.50% |
| Under $50,000 | $984 | $738 | $246 | -25.00% | |
| $50,000 – $74,999 | $6,471 | $4,845 | $1,626 | -25.10% | |
| $75,000 – $99,999 | $11,206 | $8,143 | $3,063 | -27.30% | |
| $100,000 – $199,999 | $22,050 | $17,493 | $4,557 | -20.70% | |
| $200,000 and above | $126,420 | $107,995 | $18,425 | -14.60% | |
| North Dakota | All Taxpayers | $4,210 | $3,372 | $838 | -19.90% |
| Under $50,000 | $1,127 | $847 | $280 | -24.80% | |
| $50,000 – $74,999 | $6,414 | $4,744 | $1,670 | -26.00% | |
| $75,000 – $99,999 | $11,836 | $8,375 | $3,461 | -29.20% | |
| $100,000 – $199,999 | $23,817 | $18,686 | $5,131 | -21.50% | |
| $200,000 and above | $113,759 | $101,248 | $12,511 | -11.00% | |
| Ohio | All Taxpayers | $5,455 | $4,232 | $1,223 | -22.40% |
| Under $50,000 | $1,389 | $987 | $402 | -28.90% | |
| $50,000 – $74,999 | $6,928 | $5,276 | $1,652 | -23.80% | |
| $75,000 – $99,999 | $11,634 | $8,496 | $3,138 | -27.00% | |
| $100,000 – $199,999 | $22,617 | $17,884 | $4,733 | -20.90% | |
| $200,000 and above | $124,218 | $109,372 | $14,846 | -12.00% | |
| Oklahoma | All Taxpayers | $4,534 | $3,521 | $1,013 | -22.30% |
| Under $50,000 | $862 | $682 | $180 | -20.90% | |
| $50,000 – $74,999 | $6,523 | $4,841 | $1,682 | -25.80% | |
| $75,000 – $99,999 | $11,621 | $8,432 | $3,189 | -27.40% | |
| $100,000 – $199,999 | $22,639 | $17,932 | $4,707 | -20.80% | |
| $200,000 and above | $135,207 | $115,998 | $19,209 | -14.20% | |
| Oregon | All Taxpayers | $6,011 | $4,482 | $1,529 | -25.40% |
| Under $50,000 | $1,163 | $846 | $317 | -27.30% | |
| $50,000 – $74,999 | $6,255 | $4,731 | $1,524 | -24.40% | |
| $75,000 – $99,999 | $10,810 | $7,862 | $2,948 | -27.30% | |
| $100,000 – $199,999 | $21,611 | $16,915 | $4,696 | -21.70% | |
| $200,000 and above | $134,609 | $113,385 | $21,224 | -15.80% | |
| Pennsylvania | All Taxpayers | $6,554 | $5,095 | $1,459 | -22.30% |
| Under $50,000 | $1,259 | $927 | $332 | -26.30% | |
| $50,000 – $74,999 | $6,804 | $5,170 | $1,634 | -24.00% | |
| $75,000 – $99,999 | $11,769 | $8,508 | $3,261 | -27.70% | |
| $100,000 – $199,999 | $23,074 | $18,218 | $4,856 | -21.00% | |
| $200,000 and above | $145,272 | $123,565 | $21,707 | -14.90% | |
| Rhode Island | All Taxpayers | $6,506 | $5,332 | $1,174 | -18.00% |
| Under $50,000 | $1,297 | $1,000 | $297 | -22.90% | |
| $50,000 – $74,999 | $6,711 | $5,312 | $1,399 | -20.80% | |
| $75,000 – $99,999 | $11,423 | $8,435 | $2,988 | -26.20% | |
| $100,000 – $199,999 | $22,179 | $17,710 | $4,469 | -20.10% | |
| $200,000 and above | $136,904 | $123,741 | $13,163 | -9.60% | |
| South Carolina | All Taxpayers | $4,487 | $3,373 | $1,114 | -24.80% |
| Under $50,000 | $832 | $701 | $131 | -15.70% | |
| $50,000 – $74,999 | $6,397 | $4,824 | $1,573 | -24.60% | |
| $75,000 – $99,999 | $11,131 | $8,047 | $3,084 | -27.70% | |
| $100,000 – $199,999 | $21,770 | $17,127 | $4,643 | -21.30% | |
| $200,000 and above | $119,891 | $102,027 | $17,864 | -14.90% | |
| South Dakota | All Taxpayers | $4,908 | $3,863 | $1,045 | -21.30% |
| Under $50,000 | $1,067 | $789 | $278 | -26.10% | |
| $50,000 – $74,999 | $6,411 | $4,549 | $1,862 | -29.00% | |
| $75,000 – $99,999 | $12,050 | $8,290 | $3,760 | -31.20% | |
| $100,000 – $199,999 | $24,364 | $18,753 | $5,611 | -23.00% | |
| $200,000 and above | $159,813 | $142,133 | $17,680 | -11.10% | |
| Tennessee | All Taxpayers | $5,341 | $4,167 | $1,174 | -22.00% |
| Under $50,000 | $991 | $763 | $228 | -23.00% | |
| $50,000 – $74,999 | $6,853 | $5,054 | $1,799 | -26.30% | |
| $75,000 – $99,999 | $12,260 | $8,731 | $3,529 | -28.80% | |
| $100,000 – $199,999 | $24,003 | $18,834 | $5,169 | -21.50% | |
| $200,000 and above | $143,925 | $124,513 | $19,412 | -13.50% | |
| Texas | All Taxpayers | $7,057 | $5,208 | $1,849 | -26.20% |
| Under $50,000 | $816 | $665 | $151 | -18.60% | |
| $50,000 – $74,999 | $7,187 | $5,191 | $1,996 | -27.80% | |
| $75,000 – $99,999 | $12,596 | $8,872 | $3,724 | -29.60% | |
| $100,000 – $199,999 | $24,596 | $19,130 | $5,466 | -22.20% | |
| $200,000 and above | $167,637 | $142,937 | $24,700 | -14.70% | |
| Utah | All Taxpayers | $5,066 | $3,809 | $1,257 | -24.80% |
| Under $50,000 | $979 | $633 | $346 | -35.30% | |
| $50,000 – $74,999 | $5,338 | $3,820 | $1,518 | -28.40% | |
| $75,000 – $99,999 | $9,674 | $6,912 | $2,762 | -28.50% | |
| $100,000 – $199,999 | $20,224 | $15,815 | $4,409 | -21.80% | |
| $200,000 and above | $136,388 | $119,199 | $17,189 | -12.60% | |
| Vermont | All Taxpayers | $5,521 | $4,285 | $1,236 | -22.40% |
| Under $50,000 | $1,310 | $979 | $331 | -25.30% | |
| $50,000 – $74,999 | $6,583 | $4,992 | $1,591 | -24.20% | |
| $75,000 – $99,999 | $11,562 | $8,354 | $3,208 | -27.70% | |
| $100,000 – $199,999 | $22,518 | $17,835 | $4,683 | -20.80% | |
| $200,000 and above | $116,548 | $100,927 | $15,621 | -13.40% | |
| Virginia | All Taxpayers | $7,575 | $6,089 | $1,486 | -19.60% |
| Under $50,000 | $1,238 | $925 | $313 | -25.30% | |
| $50,000 – $74,999 | $6,861 | $5,272 | $1,589 | -23.20% | |
| $75,000 – $99,999 | $11,630 | $8,611 | $3,019 | -26.00% | |
| $100,000 – $199,999 | $22,762 | $18,124 | $4,638 | -20.40% | |
| $200,000 and above | $130,535 | $110,408 | $20,127 | -15.40% | |
| Washington | All Taxpayers | $8,924 | $6,419 | $2,505 | -28.10% |
| Under $50,000 | $1,383 | $974 | $409 | -29.50% | |
| $50,000 – $74,999 | $6,921 | $5,178 | $1,743 | -25.20% | |
| $75,000 – $99,999 | $11,962 | $8,601 | $3,361 | -28.10% | |
| $100,000 – $199,999 | $23,414 | $18,225 | $5,189 | -22.20% | |
| $200,000 and above | $197,214 | $154,129 | $43,085 | -21.80% | |
| West Virginia | All Taxpayers | $3,828 | $2,913 | $915 | -23.90% |
| Under $50,000 | $974 | $761 | $213 | -21.90% | |
| $50,000 – $74,999 | $6,879 | $5,132 | $1,747 | -25.40% | |
| $75,000 – $99,999 | $12,247 | $8,906 | $3,341 | -27.30% | |
| $100,000 – $199,999 | $23,156 | $18,478 | $4,678 | -20.20% | |
| $200,000 and above | $110,961 | $96,837 | $14,124 | -12.70% | |
| Wisconsin | All Taxpayers | $5,963 | $4,697 | $1,266 | -21.20% |
| Under $50,000 | $1,355 | $973 | $382 | -28.20% | |
| $50,000 – $74,999 | $6,356 | $4,837 | $1,519 | -23.90% | |
| $75,000 – $99,999 | $11,000 | $7,886 | $3,114 | -28.30% | |
| $100,000 – $199,999 | $21,683 | $17,010 | $4,673 | -21.60% | |
| $200,000 and above | $136,747 | $121,483 | $15,264 | -11.20% | |
| Wyoming | All Taxpayers | $7,518 | $5,647 | $1,871 | -24.90% |
| Under $50,000 | $1,108 | $857 | $251 | -22.60% | |
| $50,000 – $74,999 | $6,884 | $5,193 | $1,691 | -24.60% | |
| $75,000 – $99,999 | $12,413 | $8,905 | $3,508 | -28.30% | |
| $100,000 – $199,999 | $24,121 | $18,865 | $5,256 | -21.80% | |
| $200,000 and above | $263,988 | $206,817 | $57,171 | -21.70% |
Notes: Tax figures represent income tax payments after credits, minus the refundable portions of the Earned Income Tax Credit and the Additional Child Tax Credit.
* This calculation uses the average 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) value for each income group for 2000, and then applies to it the effective tax rate for that income group for both 2000 and 2004.
Source: Internal Revenue Service; Tax Foundation calculations.
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