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#51. Delaware
Index: –0.5%
Tax rate for the poorest 20%: 5.5%
Tax rate for the middle 60%: 5.3%
Tax rate for the top 1%: 4.8%
Poorest 20% to top 1% ratio: 113%
Middle 60% to top 1% ratio: 110%
Most progressive and regressive taxation states
Depending on who is asked, taxation may be perceived as outright theft or as a necessary mechanism by which governments can give back to their citizens via a handful of goods, services, and support programs. Whether or not there should be a difference in how much the wealthy pay in taxes versus how much those with less pay is a hotly contested political issue. At the heart of the debate are competing philosophies in the form of progressive and regressive taxation.
A recent survey revealed that the average American pays just under $10,500 in federal, state, and local taxes on an annual basis, indicating an average effective tax rate of 29.8%. While this figure paints a good picture for the nation as a whole, there are a handful of factors that dictate the varying amounts of taxes paid by different American taxpayers, including which state they call home, and how much that state caters to the financial interests of their rich and poor citizens.
Stacker used 2015 data from the Institute of Taxation and Economic Policy to find out which states offer the most progressive and regressive tax policies. A regressive tax system is defined as one in which individuals with lower incomes pay a higher percentage in taxes than the rich, whereas a progressive one demands a larger percentage from those with higher incomes. Regressive tax systems are often characterized by flat tax rates, oftentimes in the form of sales or excise taxes, which uniformly impact all taxpayers regardless of income.
One of the most prevalent debates surrounding the morality of taxation is what constitutes "equality" and "inequality," with some claiming a flat tax treats everybody the same and others arguing the richer should pay back a higher percentage of their wealth since they have more to spare. Stacker ranked all 50 states, as well as the District of Columbia, according to the ITEP Tax Inequality index, which takes into account the percentages of wealth paid in total taxes by the lower, middle, and upper classes, and then compares the rates.
Read on to learn about the progressiveness or regressiveness of your state's taxes.
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#50. Washington, D.C.
Index: –0.9%
Tax rate for the poorest 20%: 5.6%
Tax rate for the middle 60%: 9.3%
Tax rate for the top 1%: 6.4%
Poorest 20% to top 1% ratio: 87%
Middle 60% to top 1% ratio: 146%
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#49. California
Index: –1.0%
Tax rate for the poorest 20%: 10.5%
Tax rate for the middle 60%: 8.3%
Tax rate for the top 1%: 8.7%
Poorest 20% to top 1% ratio: 121%
Middle 60% to top 1% ratio: 96%
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#48. Oregon
Index: –1.3%
Tax rate for the poorest 20%: 8.1%
Tax rate for the middle 60%: 7.6%
Tax rate for the top 1%: 6.5%
Poorest 20% to top 1% ratio: 125%
Middle 60% to top 1% ratio: 117%
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#47. Montana
Index: –1.4%
Tax rate for the poorest 20%: 6.1%
Tax rate for the middle 60%: 6.2%
Tax rate for the top 1%: 4.7%
Poorest 20% to top 1% ratio: 129%
Middle 60% to top 1% ratio: 131%
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#46. Vermont
Index: –1.7%
Tax rate for the poorest 20%: 8.9%
Tax rate for the middle 60%: 9.8%
Tax rate for the top 1%: 7.7%
Poorest 20% to top 1% ratio: 115%
Middle 60% to top 1% ratio: 127%
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#45. Minnesota
Index: –1.7%
Tax rate for the poorest 20%: 8.8%
Tax rate for the middle 60%: 9.7%
Tax rate for the top 1%: 7.5%
Poorest 20% to top 1% ratio: 117%
Middle 60% to top 1% ratio: 128%
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#44. Maine
Index: –1.9%
Tax rate for the poorest 20%: 9.4%
Tax rate for the middle 60%: 9.2%
Tax rate for the top 1%: 7.5%
Poorest 20% to top 1% ratio: 125%
Middle 60% to top 1% ratio: 123%
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#43. Idaho
Index: –2.0%
Tax rate for the poorest 20%: 8.5%
Tax rate for the middle 60%: 8.1%
Tax rate for the top 1%: 6.4%
Poorest 20% to top 1% ratio: 133%
Middle 60% to top 1% ratio: 126%
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#42. West Virginia
Index: –2.3%
Tax rate for the poorest 20%: 8.7%
Tax rate for the middle 60%: 8.7%
Tax rate for the top 1%: 6.5%
Poorest 20% to top 1% ratio: 134%
Middle 60% to top 1% ratio: 135%
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#41. New York
Index: –2.7%
Tax rate for the poorest 20%: 10.4%
Tax rate for the middle 60%: 11.4%
Tax rate for the top 1%: 8.1%
Poorest 20% to top 1% ratio: 128%
Middle 60% to top 1% ratio: 141%
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#40. South Carolina
Index: –2.8%
Tax rate for the poorest 20%: 7.5%
Tax rate for the middle 60%: 7.4%
Tax rate for the top 1%: 4.5%
Poorest 20% to top 1% ratio: 165%
Middle 60% to top 1% ratio: 164%
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#39. New Jersey
Index: –2.9%
Tax rate for the poorest 20%: 10.7%
Tax rate for the middle 60%: 9.1%
Tax rate for the top 1%: 7.1%
Poorest 20% to top 1% ratio: 150%
Middle 60% to top 1% ratio: 128%
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#38. Maryland
Index: –3.1%
Tax rate for the poorest 20%: 9.7%
Tax rate for the middle 60%: 9.8%
Tax rate for the top 1%: 6.7%
Poorest 20% to top 1% ratio: 145%
Middle 60% to top 1% ratio: 147%
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#37. Wisconsin
Index: –3.3%
Tax rate for the poorest 20%: 8.9%
Tax rate for the middle 60%: 10.1%
Tax rate for the top 1%: 6.2%
Poorest 20% to top 1% ratio: 143%
Middle 60% to top 1% ratio: 163%
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#36. Alaska
Index: –3.4%
Tax rate for the poorest 20%: 7%
Tax rate for the middle 60%: 4.3%
Tax rate for the top 1%: 2.5%
Poorest 20% to top 1% ratio: 281%
Middle 60% to top 1% ratio: 173%
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#35. Virginia
Index: –3.6%
Tax rate for the poorest 20%: 8.9%
Tax rate for the middle 60%: 8.3%
Tax rate for the top 1%: 5.1%
Poorest 20% to top 1% ratio: 174%
Middle 60% to top 1% ratio: 163%
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#34. Utah
Index: –3.8%
Tax rate for the poorest 20%: 8.6%
Tax rate for the middle 60%: 8.4%
Tax rate for the top 1%: 4.8%
Poorest 20% to top 1% ratio: 180%
Middle 60% to top 1% ratio: 174%
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#33. Kentucky
Index: –3.8%
Tax rate for the poorest 20%: 9%
Tax rate for the middle 60%: 10.4%
Tax rate for the top 1%: 6%
Poorest 20% to top 1% ratio: 149%
Middle 60% to top 1% ratio: 174%
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#32. Colorado
Index: –3.9%
Tax rate for the poorest 20%: 8.4%
Tax rate for the middle 60%: 8.1%
Tax rate for the top 1%: 4.6%
Poorest 20% to top 1% ratio: 184%
Middle 60% to top 1% ratio: 178%
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#31. North Carolina
Index: –3.9%
Tax rate for the poorest 20%: 9.2%
Tax rate for the middle 60%: 9.1%
Tax rate for the top 1%: 5.3%
Poorest 20% to top 1% ratio: 173%
Middle 60% to top 1% ratio: 170%
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#30. Missouri
Index: –3.9%
Tax rate for the poorest 20%: 9.5%
Tax rate for the middle 60%: 9%
Tax rate for the top 1%: 5.5%
Poorest 20% to top 1% ratio: 173%
Middle 60% to top 1% ratio: 164%
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#29. Michigan
Index: –4.3%
Tax rate for the poorest 20%: 9.2%
Tax rate for the middle 60%: 9.2%
Tax rate for the top 1%: 5.1%
Poorest 20% to top 1% ratio: 182%
Middle 60% to top 1% ratio: 182%
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#28. Nebraska
Index: –4.3%
Tax rate for the poorest 20%: 10.9%
Tax rate for the middle 60%: 9.9%
Tax rate for the top 1%: 6.3%
Poorest 20% to top 1% ratio: 172%
Middle 60% to top 1% ratio: 156%
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#27. Iowa
Index: –4.4%
Tax rate for the poorest 20%: 10.4%
Tax rate for the middle 60%: 9.8%
Tax rate for the top 1%: 6%
Poorest 20% to top 1% ratio: 174%
Middle 60% to top 1% ratio: 163%
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#26. Connecticut
Index: –5%
Tax rate for the poorest 20%: 10.5%
Tax rate for the middle 60%: 10%
Tax rate for the top 1%: 5.3%
Poorest 20% to top 1% ratio: 199%
Middle 60% to top 1% ratio: 189%
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#25. New Hampshire
Index: –5.2%
Tax rate for the poorest 20%: 8.3%
Tax rate for the middle 60%: 6.7%
Tax rate for the top 1%: 2.6%
Poorest 20% to top 1% ratio: 324%
Middle 60% to top 1% ratio: 263%
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#24. Massachusetts
Index: –5.2%
Tax rate for the poorest 20%: 10.4%
Tax rate for the middle 60%: 9.2%
Tax rate for the top 1%: 4.9%
Poorest 20% to top 1% ratio: 213%
Middle 60% to top 1% ratio: 190%
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#23. Rhode Island
Index: –5.2%
Tax rate for the poorest 20%: 12.5%
Tax rate for the middle 60%: 9.9%
Tax rate for the top 1%: 6.3%
Poorest 20% to top 1% ratio: 200%
Middle 60% to top 1% ratio: 158%
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#22. Georgia
Index: –5.3%
Tax rate for the poorest 20%: 10.4%
Tax rate for the middle 60%: 9.6%
Tax rate for the top 1%: 5%
Poorest 20% to top 1% ratio: 207%
Middle 60% to top 1% ratio: 191%
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#21. Mississippi
Index: –5.5%
Tax rate for the poorest 20%: 10.4%
Tax rate for the middle 60%: 10.2%
Tax rate for the top 1%: 5.3%
Poorest 20% to top 1% ratio: 198%
Middle 60% to top 1% ratio: 193%
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#20. North Dakota
Index: –5.7%
Tax rate for the poorest 20%: 9.3%
Tax rate for the middle 60%: 7.4%
Tax rate for the top 1%: 3%
Poorest 20% to top 1% ratio: 309%
Middle 60% to top 1% ratio: 245%
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#19. Louisiana
Index: –5.8%
Tax rate for the poorest 20%: 10%
Tax rate for the middle 60%: 9.4%
Tax rate for the top 1%: 4.2%
Poorest 20% to top 1% ratio: 235%
Middle 60% to top 1% ratio: 221%
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#18. Ohio
Index: –5.8%
Tax rate for the poorest 20%: 11.7%
Tax rate for the middle 60%: 10.2%
Tax rate for the top 1%: 5.5%
Poorest 20% to top 1% ratio: 213%
Middle 60% to top 1% ratio: 185%
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#17. New Mexico
Index: –5.9%
Tax rate for the poorest 20%: 10.9%
Tax rate for the middle 60%: 9.9%
Tax rate for the top 1%: 4.8%
Poorest 20% to top 1% ratio: 225%
Middle 60% to top 1% ratio: 204%
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#16. Oklahoma
Index: –5.9%
Tax rate for the poorest 20%: 10.5%
Tax rate for the middle 60%: 9.3%
Tax rate for the top 1%: 4.3%
Poorest 20% to top 1% ratio: 244%
Middle 60% to top 1% ratio: 217%
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#15. Hawaii
Index: –6%
Tax rate for the poorest 20%: 13.4%
Tax rate for the middle 60%: 11.2%
Tax rate for the top 1%: 7%
Poorest 20% to top 1% ratio: 191%
Middle 60% to top 1% ratio: 160%
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#14. Wyoming
Index: –6.1%
Tax rate for the poorest 20%: 8.2%
Tax rate for the middle 60%: 5.8%
Tax rate for the top 1%: 1.2%
Poorest 20% to top 1% ratio: 697%
Middle 60% to top 1% ratio: 494%
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#13. Nevada
Index: –6.2%
Tax rate for the poorest 20%: 8.4%
Tax rate for the middle 60%: 6.5%
Tax rate for the top 1%: 1.4%
Poorest 20% to top 1% ratio: 593%
Middle 60% to top 1% ratio: 455%
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#12. Alabama
Index: –6.3%
Tax rate for the poorest 20%: 10%
Tax rate for the middle 60%: 9.3%
Tax rate for the top 1%: 3.8%
Poorest 20% to top 1% ratio: 263%
Middle 60% to top 1% ratio: 244%
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#11. Arkansas
Index: –6.4%
Tax rate for the poorest 20%: 11.9%
Tax rate for the middle 60%: 11.1%
Tax rate for the top 1%: 5.6%
Poorest 20% to top 1% ratio: 212%
Middle 60% to top 1% ratio: 197%
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#10. Indiana
Index: –6.6%
Tax rate for the poorest 20%: 12%
Tax rate for the middle 60%: 10.6%
Tax rate for the top 1%: 5.2%
Poorest 20% to top 1% ratio: 231%
Middle 60% to top 1% ratio: 204%
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#9. Kansas
Index: –6.9%
Tax rate for the poorest 20%: 11.1%
Tax rate for the middle 60%: 9.2%
Tax rate for the top 1%: 3.6%
Poorest 20% to top 1% ratio: 310%
Middle 60% to top 1% ratio: 258%
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#8. Arizona
Index: –7.1%
Tax rate for the poorest 20%: 12.5%
Tax rate for the middle 60%: 9.5%
Tax rate for the top 1%: 4.6%
Poorest 20% to top 1% ratio: 272%
Middle 60% to top 1% ratio: 207%
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#7. Tennessee
Index: –7.3%
Tax rate for the poorest 20%: 10.9%
Tax rate for the middle 60%: 8.4%
Tax rate for the top 1%: 3%
Poorest 20% to top 1% ratio: 366%
Middle 60% to top 1% ratio: 280%
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#6. Pennsylvania
Index: –7.3%
Tax rate for the poorest 20%: 12%
Tax rate for the middle 60%: 10.1%
Tax rate for the top 1%: 4.2%
Poorest 20% to top 1% ratio: 286%
Middle 60% to top 1% ratio: 241%
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#5. Illinois
Index: –8.1%
Tax rate for the poorest 20%: 13.2%
Tax rate for the middle 60%: 10.9%
Tax rate for the top 1%: 4.6%
Poorest 20% to top 1% ratio: 289%
Middle 60% to top 1% ratio: 238%
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#4. South Dakota
Index: –8.4%
Tax rate for the poorest 20%: 11.3%
Tax rate for the middle 60%: 7.9%
Tax rate for the top 1%: 1.8%
Poorest 20% to top 1% ratio: 619%
Middle 60% to top 1% ratio: 431%
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#3. Texas
Index: –8.5%
Tax rate for the poorest 20%: 12.5%
Tax rate for the middle 60%: 8.8%
Tax rate for the top 1%: 2.9%
Poorest 20% to top 1% ratio: 433%
Middle 60% to top 1% ratio: 307%
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#2. Florida
Index: –9.5%
Tax rate for the poorest 20%: 12.9%
Tax rate for the middle 60%: 8.3%
Tax rate for the top 1%: 1.9%
Poorest 20% to top 1% ratio: 664%
Middle 60% to top 1% ratio: 429%
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#1. Washington
Index: –12.6%
Tax rate for the poorest 20%: 16.8%
Tax rate for the middle 60%: 10.1%
Tax rate for the top 1%: 2.4%
Poorest 20% to top 1% ratio: 687%
Middle 60% to top 1% ratio: 412%
