Most Americans believe that tax season ends on April 15th. While that is the day that both federal and state tax returns are due by, it doesn’t mean that’s the end of paying taxes.
In 2019, Americans are expected to pay $3.4 trillion in federal taxes and $1.8 trillion in state and local taxes. That’s total tax bill of over $5.2 trillion, which is 29% of the nation’s total income.
Each year, the Washington, D.C. based Tax Foundation records how long it takes the nation as a whole, as well as the residents of each state to pay off their total tax bill. This is called Tax Freedom Day.
This year, the national Tax Freedom Day fell on April 16, 105 days into the year. Compare that to 1900, when Americans only paid 5.9% of their income taxes, meaning Tax Freedom Day came on January 22.
On average, it took Americans 42 days to pay off the year’s income taxes, 15 days for sales taxes, and 11 days for property taxes.
Utah’s Tax Freedom Day fell on April 11, five days before the nationwide average. That ranks Utah #22 highest in the nation.
Tax Freedom Day is a significant date for taxpayers and lawmakers because it represents how long Americans as a whole have to work in order to pay the nation’s tax burden.
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