A new study by fintech company Self Financial has analyzed how much the average person is estimated to pay in taxes in each state, analyzing average incomes and expenditures across a number of categories.
In fiscal year 2025, the federal government collected $2.66 trillion in individual income taxes. But how much will the average American pay in income and other taxes throughout their lifetime?
The states paying the most taxes over their lifetime
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.
However, this figure varies significantly state by state.
| The top 10 highest tax paying states | ||||||
| Rank | State | Lifetime income tax | Lifetime car tax | Lifetime property tax | Lifetime personal tax | Lifetime tax |
| 1 | New Jersey | $779,557 | $12,716 | $508,156 | $58,977 | $1,359,406 |
| 2 | Massachusetts | $884,660 | $67,277 | $289,352 | $55,841 | $1,297,130 |
| 3 | Connecticut | $787,441 | $64,030 | $341,545 | $56,734 | $1,249,749 |
| 4 | New Hampshire | $723,243 | $44,871 | $357,365 | $0 | $1,125,478 |
| 5 | New York | $699,611 | $7,678 | $301,043 | $76,229 | $1,084,561 |
| 6 | California | $758,078 | $27,933 | $219,043 | $70,007 | $1,075,061 |
| 7 | Maryland | $822,386 | $11,517 | $172,746 | $53,607 | $1,060,255 |
| 8 | Illinois | $718,059 | $11,997 | $231,661 | $71,731 | $1,033,447 |
| 9 | Minnesota | $759,232 | $52,860 | $141,222 | $65,558 | $1,018,872 |
| 10 | Rhode Island | $664,200 | $13,524 | $259,440 | $62,541 | $999,704 |
The analysis revealed that taxpayers in New Jersey will pay more than double the national average, paying $1,359,406 in taxes across a lifetime, the majority coming from income taxes ($779,557), followed by property taxes ($508,156).
This total lifetime tax bill in New Jersey ($1,359,406) is the equivalent to 48.2% of the median lifetime earnings in the state ($2,820,375), making New Jersey the most expensive state for tax both as a percentage of earnings and actual cost.
Massachusetts ($1,249,749), Connecticut ($1,249,749), New Hampshire ($1,125,478), and New York ($1,084,561) round off the states with the largest lifetime tax bills.
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, which has increased by $372,289 in the past two years, to a total of $1,359,406.
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While New Jersey retained its position as the state with the highest lifetime tax burden, the rest of the top five changed between studies. Connecticut, Vermont, New York, and Massachusetts previously followed New Jersey, whereas in 2026 the ranking became Massachusetts, Connecticut, New York and New Hampshire.
The states paying the least taxes over their lifetime
| The top 10 lowest tax paying states | ||||||
| Rank | State | Lifetime income tax | Lifetime car tax | Lifetime property tax | Lifetime personal tax | Lifetime tax |
| 1 | Florida | $325,598 | $11,517 | $122,370 | $49,496 | $508,980 |
| 2 | South Dakota | $324,568 | $8,324 | $133,509 | $49,332 | $515,732 |
| 3 | Arkansas | $364,194 | $37,537 | $48,821 | $67,391 | $517,942 |
| 4 | Oklahoma | $383,322 | $8,778 | $70,084 | $64,149 | $526,333 |
| 5 | Nevada | $329,251 | $52,071 | $88,825 | $65,505 | $535,652 |
| 6 | Wyoming | $369,227 | $53,082 | $81,033 | $43,275 | $546,617 |
| 7 | Mississippi | $357,603 | $98,200 | $54,337 | $50,308 | $560,448 |
| 8 | Ohio | $372,019 | $11,037 | $127,960 | $58,361 | $569,376 |
| 9 | Louisiana | $445,660 | $12,250 | $45,149 | $72,064 | $575,122 |
| 10 | Kentucky | $430,132 | $47,658 | $68,421 | $42,743 | $588,953 |
Taxpayers in Florida will pay $508,980 in taxes across a lifetime, the majority on federal income taxes ($325,598), followed by property taxes ($122,370).
The $508,980 lifetime tax bill in Florida equates to just 25.5% of the median lifetime earnings of Florida residents ($1,999,450).
After Florida, South Dakota ($515,732), Arkansas ($517,942), Oklahoma ($526,333), and Nevada ($535,652) were found to have the lowest lifetime tax bills.
However, it’s 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.
The states with the lowest lifetime tax burdens changed considerably between 2024 and 2026. While West Virginia, Louisiana, Alabama, and Oklahoma had the lowest estimated lifetime tax totals in 2024, the 2026 rankings were led by Florida, South Dakota, Arkansas, and Oklahoma. Oklahoma was the only state to remain in the bottom group across both studies.
Comparing tax costs across categories in 2024 and 2026
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 |
Methodology: This study was initially run in February 2021, and then updated in March 2022, March 2023, February 2024 and February 2026.
To estimate the lifetime tax burden of the average American, the study uses 2024 Census income data, Bureau of Labor Statistics wage and spending data, and state-specific tax rates. It models lifetime income, property, vehicle and personal taxes using assumptions around working life, homeownership, vehicle ownership and consumer spending, with figures adjusted to February 2026 where applicable. Inheritance and marriage-related tax impacts were excluded to better reflect the average taxpayer.
Photo credit: Freepik
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Tags: earnings, Income Taxes, lifetime earnings, states, Taxes
