How much tax do we really pay?
Item | Rate | Notes |
---|---|---|
Federal personal income tax | 17% (2011 est. - 18.2%) | Top 25% rate. It ranges from a credit up to well over 40%. Source |
State & local income taxes | 10.1% (2009 - 10.6%) | State taxes range from under 6% to over 12%. Local taxes run from zero to 2.75%. Source, source, source, 2009 source |
Sales tax | 9.7% (2009 - 10.3%) | Figure is the average rate. State sales taxes range up to 8% and local taxes run from zero to over 5%. Source, source, source, 2008 source, 2009 source |
Social security & Medicaid | 7.65% | Total rate is actually 15.3% since half is paid by the employer, but we're ignoring that to be kind. Source, box 1 |
Federal corporate income tax share | 3% | Based on corporate taxes being approximately 1/6 of personal taxes, and that they are paid by individuals in the final analysis. Source |
Property tax | 2.5% (2007 - 2.7%) | Yearly average actual costs range from under $200 in Alaska to almost $1900 in New Jersey. Source |
Fuel/gasoline tax | .5% (2009 est. - .6%) | Approximately 23% of the 2005 gasoline price is for federal & state taxes. The federal excise tax is 18.4 cents per gallon. Per the CPI, about 6% of the average budget is for transportation. Estimated. 2010 estimate, $.45 per gallon average. Source |
Other | 5% (2009 est. - 7%) | Includes estate tax, fees, licenses, inflation losses, inheritance, deficit allowance, gift, and others too numerous to mention. Estimated. |
Total tax percentage paid by the above average US citizen, 2005 - 54.4%
Total tax percentage paid by the above average US citizen, 2009 est. - 57.7%
Note 1: the total tax paid is closer to 46-48% (2009, 47-50%), since the figures above do not distinguish between taxes on gross and net income, nor do they adjust for tax planning. Note also that the Tax Foundation's numbers are closer to 34% for the actual "average" US citizen.
Note 2: Inflation effects are likely quite understated - if actual inflation is 6% and one is only earning 4%. the tax rate is not the main issue.
Note 3: This page is not intended to be definitive and completely accurate on tax rates and issues - to do so would be virtually impossible considering all the factors. Its primarily intended to show a fuller picture than is normally presented.
A partial list of the various ways in which citizens of the US are taxed:
- Accounts Receivable Tax
- Building Permit Tax
- Capital Gains Tax
- CDL license Tax
- Cigarette Tax
- Corporate Income Tax
- Court Fines (indirect taxes)
- Deficit spending
- Dog License Tax
- Federal Income Tax
- Federal Unemployment Tax (FUTA)
- Fishing License Tax
- Food License Tax
- Fuel permit tax
- Gasoline Tax
- Hunting License Tax
- Inflation
- Inheritance Tax Interest expense (tax on the money)
- Inventory tax IRS Interest Charges (tax on top of tax)
- IRS Penalties (tax on top of tax)
- Liquor Tax
- Local Income Tax
- Luxury Taxes
- Marriage License Tax
- Medicare Tax
- Property Tax
- Real Estate Tax
- Septic Permit Tax
- Service Charge Taxes
- Social Security Tax
- Road Usage Taxes (Truckers)
- Sales Taxes
- Recreational Vehicle Tax
- Road Toll Booth Taxes
- School Tax
- State Income Tax
- State Unemployment Tax (SUTA)
- Telephone federal excise tax
- Telephone federal universal service fee tax
- Telephone federal, state and local surcharge taxes
- Telephone minimum usage surcharge tax
- Telephone recurring and non-recurring charges tax
- Telephone state and local tax
- Telephone usage charge tax
- Toll Bridge Taxes
- Toll Tunnel Taxes
- Traffic Fines (indirect taxation)
- Trailer Registration Tax
- Utility Taxes
- Vehicle License Registration Tax
- Vehicle Sales Tax
- Watercraft Registration Tax
- Well Permit Tax
- Workers Compensation Tax
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