A Third of Lifetime Income Lost to Taxes on Average, but up to Half in Some States
Most people grumble about the taxes they pay. Whether it’s on income, property, sales, or some other form of tax, we pay a lot – seemingly more every day.
But how much do we spend over the course of our working lives? A new study from Self crunched the numbers and came up with some eye-popping results:
The average American will pay $525,037 in taxes throughout their lifetime
That’s an average of 34.3% of all lifetime earnings spent on taxes
Residents of New Jersey will pay the most in lifetime taxes ($931,000) and people in West Virginia will pay the least ($321,000)
Tax on earnings is where most tax will come from, with the average American paying $339,173 in a lifetime
Owning a car will cost an additional $29,521 in tax payments alone
Tax on property will set you back an additional $128,581 above the property price and maintenance
Tax payers in California will pay the most on everyday expenses ($40,084), followed by New Yorkers ($39,745)
So roughly a third of what you earn will be taxed (nearly 50 percent in New Jersey) over the course of a lifetime.
And in the eyes of some politicians, you’re still not taxed enough.