How much tax do we really pay?



ItemRateNotes
Federal personal income tax 17% Top 25% rate. It ranges from a credit up to well over 40%. Source
State & local income taxes 10.1% State taxes range from under 6% to over 12%. Local taxes run from zero to 2.75%. Source,  source,  source2008 source
Sales tax 8.6% Figure is the average rate. State sales taxes range up to 7% and local taxes run from zero to over 5%. Source,  source,  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% Yearly average actual costs range from under $200 in Alaska to almost $1900 in New Jersey. Source
Fuel/gasoline tax .5% 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. Source
Other 5% 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%



Note 1: the total tax paid is closer to 46-48%, since the figures above do not distinguish between taxes on gross and net income. 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:



Oil industry profits are less than the taxes they pay

History of Federal Individual Income Tax Rates