Study reveals average lifetime tax costs by state: How much are you paying?

A recent study found the average amount of taxes Americans will pay over their lifetime. 

Income tax, property tax, personal expenses

Dig deeper:

Self, a credit monitoring app, found that Americans will pay $762,272 in taxes in their lifetime, which accounts for about one-third of their estimated lifetime earnings, which averages at about $2,266,605.

The majority of taxes goes toward paying income taxes, followed by property taxes, then personal daily expenditures, and car ownership, according to Self. 

Taxes vary by state

By the numbers:

Tax burdens vary dramatically depending on where a person lives.

Residents in New Jersey face the highest overall lifetime tax burden at $1,359,406 (48.2% of their lifetime earnings), followed by Massachusetts, Connecticut, New Hampshire, and New York. 

Conversely, residents in Florida pay the lowest overall dollar amount in lifetime taxes at 508,980 (25.5% of lifetime earnings),while residents in Wyoming pay the lowest proportion of their lifetime earnings toward taxes at 24.8% (546,617).

Taxes are going up

Big picture view:

Compared to the previous iteration of the study conducted in 2024, the average lifetime tax figure rose significantly from $524,625 to $762,272. 

This increase was primarily driven by higher projected lifetime earnings, which nearly doubled the estimated income tax paid. 

While lifetime income tax estimates rose by $262,166, estimated lifetime taxes on property and car ownership saw slight decreases over the same period.

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