Tuesday, April 8, 2014

When is Your Tax Freedom Day?

"Tax Freedom Day is the day when the nation as a whole has earned enough money to pay its total tax bill for year," writes the Tax Foundation, which does the calculations each year.
In 2014, Americans will pay $3.0 trillion in federal taxes and $1.5 trillion in state taxes, for a total tax bill of $4.5 trillion, or 30.2 percent of income.
This year, Americans' federal "Tax Freedom Day falls on April 21, or 111 days into the year," but their state tax freedom day varies widely.

The 10 states with the smallest tax bite, and earliest Tax Freedom Day, are:
  • Louisiana - Tax Freedom Day is March 30
  • Mississippi - April 2
  • South Dakota - April 4
  • Tennessee - April 5
  • Alabama - April 7
  • Kentucky & New Mexico - April 8
  • South Carolina - April 9
  • West Virginia - April 10
The 10 states with the biggest tax bite, and latest Tax Freedom Day, are:
  • Connecticut & New Jersey - May 9
  • New York - May 4
  • California - April 30
  • Massachusetts & Minnesota - April 29
  • Illinois & Maryland - April 28
  • North Dakota & Washington - April 25

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