Here we present tables showing average and marginal tax rates for taxpayers in every state at four levels of income ($10,000., 25,000., 50,000., 75,000. and 100,000.) and four family types. Income is 91% wages, 6% dividends and 3% from taxable interest. Itemized deductions are $100 plus 2% of income for real estate taxes, $100 + 2% charitable giving and $100 plus 6% for mortgage interest.These ratios are not intended to be typical or average, merely not unreasonable.
The four family types are:
Marginal tax rates are from finite differences applied to wage income and include the effects of clawbacks, phaseouts and the deductibility of federal income tax on some state returns - they are not just the bracket rates. However the deduction of state tax on the federal return is ignored. In some cases (for example Arkansas) the taxpayer may be on the edge of itemization, and through time may flip between no marginal subsitdy and a significant subsidy without obvious pattern. We have not attempted to compensate for this.
We use the TAXSIM calculator to make these calculations.
Real files are inflation adjusted (GNP deflator) to 2005 levels.