Once again, NY has the 3rd longest time to tax freedom day!

Federal Tax Freedom Day falls on April 24, a lengthy 114 days into the year, High tax state New York when combined is even lengthier on May 8, and this is a total tax bill of $4.85 trillion, or 31 percent of national income. If you include annual federal borrowing, which represents future taxes owed, Tax Freedom Day would occur 14 days later. 

Tax Freedom Day® 2015 is April 24th 

Key Findings
  • 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.
  • Americans will collectively spend more on taxes in 2015 than they will on food, clothing, and housing combined. If you include annual federal borrowing, which represents future taxes owed, Tax Freedom Day would occur 14 days later.

What Is Tax Freedom Day?

Tax Freedom Day is the day when the nation as a whole has earned enough money to pay its total tax bill for the year. Tax Freedom Day takes all federal, state, and local taxes and divides them by the nation’s income. In 2015, Americans will pay $3.28 trillion in federal taxes and $1.57 trillion in state and local taxes, for a total tax bill of $4.85 trillion, or 31 percent of national income. This year, Tax Freedom Day falls on April 24, or 114 days into the year.

What Taxes Do We Pay?

This year, Americans will work the longest to pay federal, state, and local individual income taxes (43 days). Payroll taxes will take 26 days to pay, followed by sales and excise taxes (15 days), corporate income taxes (12 days), and property taxes (11 days) [this is a national average and is higher in NY and one of the main reasons the states tax day is longer, our emphasis added]. The remaining 7 days are spent paying estate and inheritance taxes, customs duties, and other taxes.

When Is Tax Freedom Day if You Include Federal Borrowing?

…If we include this annual federal borrowing, which represents future taxes owed, Tax Freedom Day would occur 14 days later…

When Is My State’s Tax Freedom Day?

The total tax burden borne by residents of different states varies considerably due to differing state tax policies and the progressivity of the federal tax system. This means a combination of higher-income and higher-tax states celebrate Tax Freedom Day later: Connecticut (May 13), New Jersey (May 13), and New York (May 8). Residents of Louisiana will bear the lowest average tax burden in 2015, with Tax Freedom Day arriving for them on April 2.

How Has Tax Freedom Day Changed over Time?

The latest ever Tax Freedom Day was May 1, 2000, meaning Americans paid 33 percent of their total income in taxes that year. A century earlier, in 1900, Americans paid only 5.9 percent of their income in taxes, meaning Tax Freedom Day came on January 22. The last time Tax Freedom Day was this late in the year was 2007 (April 25).

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