A new study unveiled significant disparities in the total amount of taxes paid by residents of each state throughout their lifetime.
The study, conducted by Self Financial, a personal finance site, found that the average American pays a staggering $524,625 in taxes throughout their lifetime. However, the variation among states is striking, with residents in the northeast bearing the heaviest tax burden.
Leading the pack is New Jersey, where residents pay a staggering $987,117 in total taxes over their lifetime, making it the highest-taxed state in the country. Following closely behind are Connecticut and Massachusetts, with lifetime tax amounts of $855,307 and $816,700, respectively.
In contrast, West Virginia emerged as the least taxed state, with residents facing a lifetime tax burden of only $358,407. Alaska led all 50 states in total lifetime taxes being the lowest percentage of lifetime earnings, with residents only having to pay 24.5% of their earnings in taxes.
The average tax burden of $524,625 constitutes approximately one-third of the average lifetime earnings of an American. In New Jersey, where taxpayers pay the most, the amount of taxes paid equates to over 50% of residents’ lifetime earnings.
The study, which collected data at the beginning of the year, takes into account various forms of taxation, including income, property, vehicles, clothing, food, and entertainment.
According to the study, property taxes alone add an additional $165,492 to the average homeowner’s expenses, on top of the initial purchase price and ongoing maintenance costs.
Moreover, taxpayers in Washington incur the highest expenses on everyday items, such as food, clothing, personal care, and entertainment, with an average of $83,014, followed closely by California at $78,191.
Breaking down the tax allocation, the study reveals that over 50% of taxes paid by the average American taxpayer are on earnings, followed by 31.5% on property, 9.5% on personal expenses, and 7.4% on automobile purchases.
