According to a recent study, residents in the tri-state area, which includes New York, New Jersey, and Connecticut, pay some of the highest taxes in the nation on their lifetime earnings. New Jersey leads the pack, with residents paying an average of $987,117 in various taxes during their lifetime, which is approximately 54.3% of a resident’s total lifetime earnings. Connecticut ranked second in the study, with residents paying an average of $855,307 on their lifetime earnings. New York came in fourth, with residents spending $748,199 on average over their lifetime.
In New York, residents pay a significant amount in taxes on various categories, including earnings, property, personal spending, and cars. Despite not having an income tax, residents in New Hampshire still pay a significant amount in total lifetime taxes, averaging $722,610. On a national level, Americans on average pay $524,625 in total taxes over their lifetime, which equates to approximately 34.1% of their total earnings. West Virginians pay the lowest amount of total taxes in the nation, at $358,407, while Alaskans pay the lowest share of their lifetime earnings on taxes, with an average of $400,742.
The study conducted by the financial technology company Self shed light on the burden that residents in the tri-state area face when it comes to taxes. With New Jersey, Connecticut, and New York ranking among the top five states for residents paying the most in federal and state taxes on their lifetime earnings, taxpayers in these states can expect a significant financial burden over their lifetimes. Despite the high taxes in these states, there are variations in the types of taxes residents pay, with each state having its unique set of tax burdens, including taxes on earnings, property, personal spending, and cars.
The study also highlighted the disparities in total lifetime taxes paid across different states, with residents in states like West Virginia paying significantly lower amounts compared to those in the tri-state area. With Americans on average paying over half a million dollars in total taxes over their lifetime, the burden of taxes on lifetime earnings varies greatly depending on the state of residence. While states like New Jersey lead the pack in terms of total lifetime tax expenditures, others like Alaska stand out for having the lowest share of lifetime earnings dedicated to taxes. Overall, the study provides valuable insights into the tax burdens faced by residents across different states in the U.S. and highlights the significant differences in total lifetime taxes paid.
