Money A Life of Tax: How Much Tax Will Americans Pay Over Their Lifetime?
In 1789, Benjamin Franklin wrote that in life, “nothing can be said to be certain, except death and taxes”. Whether we like it or not, taxes are an essential part of any functioning economy. Tax dollars pay for everything from roads and infrastructure to schools and social security.
In fiscal year 2025, the U.S. federal government collected approximately $2.66 trillion in individual income taxes. [1] U.S. Treasury Fiscal, 'Combined Statement Of Receipts, Outlays, & Balances' https://www.fiscal.treasury.gov/files/reports-statements/combined-statement/cs2025/2025-cs-final.pdf But how much will the average American pay in income and other taxes throughout their lifetime?
This study has analyzed how much tax the average person is estimated to pay in each state, analyzing average incomes and expenditures across a number of categories.
Key statistics
- The average American will pay $762,272 in taxes throughout their lifetime – that’s a third (33.6%) of all estimated lifetime earnings ($2,266,605) spent on taxes.
- This is a $237,647 increase since the 2024 estimation of $524,625 in taxes.
- Residents in New Jersey will pay the most in lifetime taxes ($1,359,406) and people in Florida will pay the least ($508,980).
- In 2024, the last time this study was conducted, it was also residents of New Jersey who were projected to pay the most ($987,117) and West Virginia the least ($358,407).
- Tax on earnings is where most tax will come from, with the average American paying $532,580 in a lifetime just on their wages – a $262,166 increase since 2024.
- Owning the most popular car (Ford F-Series) will cost an additional $31,817 in tax payments alone, across the average four cars owned in a lifetime. This is a $7,072 decrease from 2024 ($38,889).
- Tax on property will set the average homeowner back an additional $145,853 on top of the purchase price and running costs. This is $19,639 less than in 2024.
- Taxpayers in New York will pay the most on everyday expenses ($76,229), followed by those in Washington ($74,994), accounting for food, clothing, personal care, and entertainment.
Which states will pay the most in taxes over their lifetime?
The map below allows you to explore estimated lifetime taxes on income, property purchases, daily typical expenditures, and the cost of buying cars over a typical life expectancy. For the full breakdown of how each category is calculated, please see the methodology below.
Press the buttons to view the data differently in each category to explore how the states compare to each other.
How has this changed since 2024?
In 2024, the last time this study was conducted, New Jersey had the highest lifetime tax amount of $987,117. In 2026, this has increased by $372,289 to a total of $1,359,406.
There are a number of changes to the order in which states placed in the top 10 in 2024, to 2026. Previously, New Jersey had the highest overall lifetime tax, followed by Connecticut, Vermont, New York and Massachusetts. However in 2026, the rankings changed to New Jersey, Massachusetts, Connecticut, New York and New Hampshire rounding off the top five.
Likewise, there was further change in which states in 2024 and 2026 paid the least in lifetime taxes. In 2024, West Virginia ($358,407), Louisiana ($358,611), Alabama ($360,053) and Oklahoma ($371,432) were found to have the smallest totals of estimated lifetime tax. In 2026, this has changed to Florida ($508,980), South Dakota ($515,732), Arkansas ($517,942) and Oklahoma ($526,333).
Which states pay the most in taxes compared to their lifetime earnings?
It is important to understand that this analysis accounts specifically for tax on income and specific expenditure categories: cars, homes, clothing, food/drink, entertainment, and personal care. Other potential expenditures that may cause taxes to be paid throughout an individual’s life are not included in this study.
With this in mind, taxpayers in New Jersey are estimated to pay a total of $1,359,406 in taxes over their lifetime, which amounts to 48.2% of their lifetime earnings, the highest of any state.
Conversely, residents of Florida pay the lowest total taxes in the U.S., amounting to $508,980, or approximately 25.5% of their lifetime earnings.
However, it is those living and working in Wyoming who will pay the lowest percentage of their life’s earnings on tax. Residents in this state will pay $546,617 the equivalent of 24.8% of their lifetime earnings.
In the table below you can see a state-by-state breakdown of the average lifetime earnings compared to estimated lifetime taxes, and the percentage of earnings that will go toward tax payments.
| Average lifetime earnings vs estimated lifetime taxes | |||
|---|---|---|---|
| State | Lifetime earnings | Lifetime taxes | Percentage of earnings |
| New Jersey | $2,820,375 | $1,359,406 | 48.2% |
| Connecticut | $2,780,733 | $1,249,749 | 44.9% |
| Massachusetts | $2,993,634 | $1,297,130 | 43.3% |
| New Hampshire | $2,606,656 | $1,125,478 | 43.2% |
| Illinois | $2,427,967 | $1,033,447 | 42.6% |
| California | $2,583,748 | $1,075,061 | 41.6% |
| New York | $2,631,795 | $1,084,561 | 41.2% |
| Vermont | $2,322,465 | $953,322 | 41.0% |
| Minnesota | $2,508,665 | $1,018,872 | 40.6% |
| Rhode Island | $2,488,733 | $999,704 | 40.2% |
| Maryland | $2,804,236 | $1,060,255 | 37.8% |
| Wisconsin | $2,252,217 | $851,139 | 37.8% |
| Virginia | $2,524,173 | $911,706 | 36.1% |
| Pennsylvania | $2,325,328 | $835,067 | 35.9% |
| Nebraska | $2,155,714 | $761,072 | 35.3% |
| Maine | $2,212,314 | $758,818 | 34.3% |
| Kansas | $2,102,052 | $711,966 | 33.9% |
| Iowa | $2,169,697 | $730,349 | 33.7% |
| Michigan | $2,259,171 | $753,076 | 33.3% |
| Oregon | $2,380,478 | $775,976 | 32.6% |
| Montana | $2,071,669 | $669,934 | 32.3% |
| Colorado | $2,604,908 | $839,899 | 32.2% |
| Missouri | $2,079,553 | $665,381 | 32.0% |
| Arizona | $2,188,179 | $698,824 | 31.9% |
| Delaware | $2,311,718 | $731,824 | 31.7% |
| Tennessee | $2,015,850 | $632,562 | 31.4% |
| South Carolina | $2,000,491 | $626,485 | 31.3% |
| Mississippi | $1,798,895 | $560,448 | 31.2% |
| Utah | $2,315,920 | $709,803 | 30.6% |
| Georgia | $2,140,690 | $655,532 | 30.6% |
| New Mexico | $1,983,162 | $605,411 | 30.5% |
| Indiana | $2,108,002 | $643,299 | 30.5% |
| West Virginia | $1,952,593 | $593,639 | 30.4% |
| Idaho | $2,059,100 | $621,705 | 30.2% |
| Alabama | $1,971,931 | $591,168 | 30.0% |
| Kentucky | $1,979,517 | $588,953 | 29.8% |
| Hawaii | $2,300,115 | $684,028 | 29.7% |
| Washington | $2,789,249 | $816,217 | 29.3% |
| Louisiana | $1,988,703 | $575,122 | 28.9% |
| North Carolina | $2,085,912 | $591,911 | 28.4% |
| Texas | $2,175,386 | $615,932 | 28.3% |
| North Dakota | $2,214,508 | $626,340 | 28.3% |
| Arkansas | $1,862,189 | $517,942 | 27.8% |
| Alaska | $2,536,519 | $702,376 | 27.7% |
| Oklahoma | $1,911,649 | $526,333 | 27.5% |
| Nevada | $2,062,595 | $535,652 | 26.0% |
| Ohio | $2,218,115 | $569,376 | 25.7% |
| Florida | $1,999,450 | $508,980 | 25.5% |
| South Dakota | $2,045,563 | $515,732 | 25.2% |
| Wyoming | $2,207,963 | $546,617 | 24.8% |
These figures were calculated by adding both federal and state lifetime taxes across earnings, sales, property, and automotive, then compared against an estimated lifetime earnings figure based on 2024 Census data [2] United States Census Bureau, 'Earnings in the Past 12 Months (in 2024 Inflation-Adjusted Dollars)' https://data.census.gov/table?t=Earnings+%28Individuals%29&g=010XX00US$0400000 and multiplied by an estimated working lifetime of 45 years from age 22 to 67 (the estimated graduation age and retirement age). [3] Coursera, 'How Long Does It Take to Get a Bachelor’s Degree?', 2024 https://www.coursera.org/articles/how-long-does-it-take-to-get-a-bachelors-degree [4] Social Security, 'Normal Retirement Age' https://www.ssa.gov/oact/progdata/nra.html The full breakdown of what went into this study can be read in the methodology below.
How has this changed since 2024?
There were changes to the top states paying the most in taxes compared to their lifetime between 2024 and 2026. Although both New Jersey and Connecticut maintained their respective first and second positions, Vermont dropped from 3rd to 8th, replaced by New Hampshire. In 2026, following New Hampshire is Massachusetts (37.4%), Illinois (36.6%) and New York (35.9%). However, in 2024, the top five states were New Jersey, Connecticut, Vermont, New York and Massachusetts.
In 2024, Alaska had the lowest share of lifetime earnings spent on tax, at 24.5%. However, the updated 2026 study found that Wyoming now has the lowest proportion, at 24.8%. The rankings for the second and third lowest states have also changed. In 2026, South Dakota ranked second lowest with 25.2%, followed by Florida at 25.5%. By contrast, in 2024 Alaska was followed by Delaware (25.7%) and Louisiana (27.2%).
How much tax will the average American pay in their lifetime?
The average taxpayer in the U.S. will spend an estimated $762,272 - a third (33.6%) of all estimated lifetime earnings ($2,266,605) - on various state and federal taxes.
However, some states see taxpayers paying even more than the national average, due to local property markets, salaries, and government actions.
You can see the average American’s lifetime tax breakdown in the following chart:
| Tax categories | Average lifetime taxes |
|---|---|
| Earnings | $532,580 |
| Property | $145,853 |
| Personal | $52,021 |
| Cars | $31,817 |
How has this changed since 2024?
In 2024, the average American was estimated to pay $524,625 in taxes throughout their lifetime, over a third (34.7%) of all estimated lifetime earnings. In 2026, this figure increased to $762,272 across a lifetime, and represents a percentage of 33.6% of all lifetime earnings. This smaller percentage is partially explained by an increased estimation in lifetime earnings (from $1,494,986 in 2024 to $2,266,605 in 2026).
However, this increase in earnings meant that lifetime tax of income increased by $262,166 from 2024.
Alongside a difference overall to the combined sales tax across all states, the overall tax on personal spending increased by $2,191. On the other hand, tax on car ownership decreased by $7,072 and property tax decreased by $19,639 between 2024 and 2026.
In contrast, earnings tax increased by $262,166, from $270,414 in 2024 to $532,580 in 2026.
| Tax categories | 2024 | 2026 | Difference |
|---|---|---|---|
| Earnings | $270,414 | $532,580 | +$262,166 |
| Property | $165,492 | $145,853 | -$19,242 |
| Personal | $49,830 | $52,021 | +$17,561 |
| Cars | $38,889 | $31,817 | -$7,470 |
| Tax category | 2024 | 2026 |
|---|---|---|
| Earnings | $270,414 | $532,580 |
| Property | $165,492 | $145,853 |
| Personal | $49,830 | $52,021 |
| Cars | $38,889 | $31,817 |
Methodology
This study was initially run in February 2021, and then updated in March 2022, March 2023, February 2024 and February 2026.
To establish the amount of tax the average American pays in their lifetime, this updated study, which was last published in 2024, takes individual median earning information from 2024 Census data [2] United States Census Bureau, 'Earnings in the Past 12 Months (in 2024 Inflation-Adjusted Dollars)' https://data.census.gov/table?t=Earnings+%28Individuals%29&g=010XX00US$0400000 and BLS data was used to apply wage increase. [5] U.S. Bureau of Labor Statistics, 'Employment Cost Index – December 2025' https://www.bls.gov/news.release/pdf/eci.pdf
The tax paid on earnings is for a single filer based on state-level taxes [6] Tax Foundation, 'State Individual Income Tax Rates and Brackets, 2025' https://taxfoundation.org/data/all/state/state-income-tax-rates/, federal income taxes [7] Tax Foundation, '2026 Tax Brackets' https://taxfoundation.org/data/all/federal/2026-tax-brackets/, when applied to the average salaries in each state. The average salary is assumed to stay the same and tax rates remain stable over an individual’s working lifetime based on data available in February 2026.
An estimated working lifetime of 45 years from age 22 to 67 (the estimated graduation age and retirement age) [3] Coursera, 'How Long Does It Take to Get a Bachelor’s Degree?', 2024 https://www.coursera.org/articles/how-long-does-it-take-to-get-a-bachelors-degree [4] Social Security, 'Normal Retirement Age' https://www.ssa.gov/oact/progdata/nra.html was used to analyze income taxes. This study assumes that work life starts after a four-year degree based on age 22 as it’s reported that 62% of high school students attend college. [8] U.S. Bureau of Labor Statistics, 'College Enrollment and Work Activity of Recent High School and College Graduates Summary' https://www.bls.gov/news.release/hsgec.nr0.htm The average years where an individual will pay taxes on expenditures was derived from the age of 18 and the average life expectancy (79.6). [9] United Nations, 'Life expectancy E(x) - complete' https://population.un.org/dataportal/data/indicators/76/locations/840/start/1990/end/2025/table/pivotbylocation?df=d6988175-4b5e-407d-bc35-fad032ad1f35
Personal expenditure data comes from the Consumer Expenditure Report (2024) [10] U.S. Bureau of Labor Statistics, 'Consumer Expenditure Survey' https://data.bls.gov/PDQWeb/cx from the Bureau of Labor Statistics, specifically census regional spending on food, apparel, personal care, and entertainment per year. For the purposes of this study, “food” is used as a single category, however the Consumer Expenditure Report splits ‘food’ into two major components, ‘Food at Home’ and ‘Food Away From Home’, however, groceries are not always subject to tax.
Expenditure is divided by 1.3, the average number of earners in a household, [11] U.S. Bureau of Labor Statistics, 'Table 1203. Income before taxes: Shares of annual aggregate expenditures and sources of income, Consumer Expenditure Surveys, 2021' https://www.bls.gov/cex/tables/calendar-year/aggregate-group-share/cu-income-before-taxes-2021.pdf to reflect an expenditure for one individual. The CPI Inflation Calculator was used to make expenditures applicable to February 2026. State-specific sales taxes were applied to expenditures and kept constant across categories of spending, ‘Combined Rates’ were used from the Tax Foundation which accounts for local sales taxes. [12] Tax Foundation, 'State and Local Sales Tax Rates, 2026' https://taxfoundation.org/data/all/state/sales-tax-rates/
Property tax was calculated by using the cost of a ZHVI single family home time series taken on the 31st December 2025, from Zillow. [13] Zillow, 'Housing Data' https://www.zillow.com/research/data/ An individual was assumed to own property from 40 (the age of the average first-time homebuyer) [14] National Association of Realtors, 'Highlights From the Profile of Home Buyers and Sellers' https://www.nar.realtor/research-and-statistics/research-reports/highlights-from-the-profile-of-home-buyers-and-sellers to 79.6 (the average life expectancy). [9] United Nations, 'Life expectancy E(x) - complete' https://population.un.org/dataportal/data/indicators/76/locations/840/start/1990/end/2025/table/pivotbylocation?df=d6988175-4b5e-407d-bc35-fad032ad1f35
The study takes the age an individual can acquire a full license in each state [15] Parents, 'Driving Age by State' https://www.parents.com/driving-age-by-state-8607683 up to average life expectancy. [9] United Nations, 'Life expectancy E(x) - complete' https://population.un.org/dataportal/data/indicators/76/locations/840/start/1990/end/2025/table/pivotbylocation?df=d6988175-4b5e-407d-bc35-fad032ad1f35 The study uses the average value ($39,885) of a Ford F-Series, the best-selling car of 2025. [16] Best Selling Cars, '2025 (Full Year) USA : Top 10 Best-Selling Vehicle Models' https://www.best-selling-cars.com/usa/2025-full-year-usa-top-10-best-selling-vehicle-models/ Based on the starting age in each state and the average life expectancy, car owners were assumed to own an average of five cars over a lifetime based on the fact that consumers typically keep a car for around 12.8 years. [17] S&P Global, 'U.S. Vehicle Age Rises Again to 12.8 Years in 2025, According to S&P Global Mobility' https://press.spglobal.com/2025-05-21-U-S-Vehicle-Age-Rises-Again-to-12-8-Years-in-2025,-According-to-S-P-Global-Mobility
Car property tax was taken from a WalletHub study [18] WalletHub, 'Property Taxes by State (2026)' https://wallethub.com/edu/states-with-the-highest-and-lowest-property-taxes/11585 analyzing this average cost in each state based on respective Department of Motor Vehicles data, using weighted averages based on population size in cities and counties that account for at least 50% of a state’s population.
Inheritance tax was excluded from this study as it was deemed the average American would not have to pay this due to inheritance thresholds not being exceeded. Only 6 states have an inheritance tax and according to 2021 data from the IRS just 0.2% of U.S. adults who die have owed estate tax in recent years. [19] IRS, 'SOI tax stats - Historical Table 17' https://www.irs.gov/statistics/soi-tax-stats-historical-table-17
This study applies the individual income filter using median earnings (dollars) for full-time, year-round workers, because the tax estimates are calculated for a single filer rather than household units.
Sources
- [1] U.S. Treasury Fiscal, 'Combined Statement Of Receipts, Outlays, & Balances' https://www.fiscal.treasury.gov/files/reports-statements/combined-statement/cs2025/2025-cs-final.pdf
- [2] United States Census Bureau, 'Earnings in the Past 12 Months (in 2024 Inflation-Adjusted Dollars)' https://data.census.gov/table?t=Earnings+%28Individuals%29&g=010XX00US$0400000
- [3] Coursera, 'How Long Does It Take to Get a Bachelor’s Degree?', 2024 https://www.coursera.org/articles/how-long-does-it-take-to-get-a-bachelors-degree
- [4] Social Security, 'Normal Retirement Age' https://www.ssa.gov/oact/progdata/nra.html
- [5] U.S. Bureau of Labor Statistics, 'Employment Cost Index – December 2025' https://www.bls.gov/news.release/pdf/eci.pdf
- [6] Tax Foundation, 'State Individual Income Tax Rates and Brackets, 2025' https://taxfoundation.org/data/all/state/state-income-tax-rates/
- [7] Tax Foundation, '2026 Tax Brackets' https://taxfoundation.org/data/all/federal/2026-tax-brackets/
- [8] U.S. Bureau of Labor Statistics, 'College Enrollment and Work Activity of Recent High School and College Graduates Summary' https://www.bls.gov/news.release/hsgec.nr0.htm
- [9] United Nations, 'Life expectancy E(x) - complete' https://population.un.org/dataportal/data/indicators/76/locations/840/start/1990/end/2025/table/pivotbylocation?df=d6988175-4b5e-407d-bc35-fad032ad1f35
- [10] U.S. Bureau of Labor Statistics, 'Consumer Expenditure Survey' https://data.bls.gov/PDQWeb/cx
- [11] U.S. Bureau of Labor Statistics, 'Table 1203. Income before taxes: Shares of annual aggregate expenditures and sources of income, Consumer Expenditure Surveys, 2021' https://www.bls.gov/cex/tables/calendar-year/aggregate-group-share/cu-income-before-taxes-2021.pdf
- [12] Tax Foundation, 'State and Local Sales Tax Rates, 2026' https://taxfoundation.org/data/all/state/sales-tax-rates/
- [13] Zillow, 'Housing Data' https://www.zillow.com/research/data/
- [14] National Association of Realtors, 'Highlights From the Profile of Home Buyers and Sellers' https://www.nar.realtor/research-and-statistics/research-reports/highlights-from-the-profile-of-home-buyers-and-sellers
- [15] Parents, 'Driving Age by State' https://www.parents.com/driving-age-by-state-8607683
- [16] Best Selling Cars, '2025 (Full Year) USA : Top 10 Best-Selling Vehicle Models' https://www.best-selling-cars.com/usa/2025-full-year-usa-top-10-best-selling-vehicle-models/
- [17] S&P Global, 'U.S. Vehicle Age Rises Again to 12.8 Years in 2025, According to S&P Global Mobility' https://press.spglobal.com/2025-05-21-U-S-Vehicle-Age-Rises-Again-to-12-8-Years-in-2025,-According-to-S-P-Global-Mobility
- [18] WalletHub, 'Property Taxes by State (2026)' https://wallethub.com/edu/states-with-the-highest-and-lowest-property-taxes/11585
- [19] IRS, 'SOI tax stats - Historical Table 17' https://www.irs.gov/statistics/soi-tax-stats-historical-table-17
