It may be a bit past tax day, but we’ve still got taxes on the brain! We got to thinking…it seems like we pay so much in taxes each year, but how much do we pay throughout our lifetimes? You may not want to know the answer, but we went out and found one for you!
Here are Five Fast Facts about a lifetime of paying taxes:
- 🔍 Who Dunnit? - A report by personal finance website Self Financial studied all kinds of taxes, including income, houses, vehicles, the stuff we buy, and the fun things we do. They included national surveys as well as sources like Zillow. It’s hard to believe anyone could actually capture ALL of the things we’re taxed on, but good on them for giving it a shot.
- 💸 Average Joes - The average American pays a whopping $525k in taxes throughout their lifetime! 🤯 Given that the average American’s lifetime income is about $1.5 million, that’s quite a hefty effective tax rate (35%)!
- 😣 The Highest Highs - Tax rates depend, in part, on location. Folks in New Jersey paid the most, at an eye-watering $987k, followed by Washington DC at $884k. Connecticut and Massachusetts are next at $855k and $816k, respectively. Also, they are two of the longest state names. Not that that matters, but hey, useless trivia is fun!
- 😍 The Lowest Lows - If you want to reduce the number of dollars you give to the government, move to West Virginia. It’s the lowest tax state, with a lifetime tax bill of $358k. #bargainshopping
- 🚚 Get Your Move On - People have always moved around to find better financial situations, but the pandemic really amped things up with all the remote work going on. In 2022, well over 8 million people moved from one state to another. New Jersey lost the most residents, and five other high-tax states are in the top eight for residents moving out. What a shocker.
🔥Bottom line: You can’t escape taxes (legally) no matter where you are. And honestly, taxes are just one aspect of choosing where to live. But if it is super important to you, now you know where to go…and where to avoid.
How’s the tax situation where you are?
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