Tax Freedom Day: April 23
With federal income tax season coming to a close, how much longer will you have to work this year to cover 2017's tax bill? According to the Tax Foundation, Tax Freedom Day is April 23rd, meaning that, on average, you will have to work another week to fulfill the taxman's demands. And many Americans won't be finished working to pay their yearly tax bite until well into May:
This year, Tax Freedom Day falls on April 23rd, 113 days into the year.
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 pay $3.5 trillion in federal taxes and $1.6 trillion in state and local taxes, for a total bill of more than $5.1 trillion, or 31 percent of the nation’s income.
Americans will collectively spend more on taxes in 2017 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, on May 7.
Tax Freedom days vary from state to state, owing to state and local taxes:
This means that states with higher incomes and higher taxes celebrate Tax Freedom Day later: Connecticut (May 21), New Jersey (May 13), and New York (May 11). Residents of Mississippi bear the lowest average tax burden in 2017, with their Tax Freedom Day having arrived on April 5. Also early were Tennessee (April 7) and South Dakota (April 8).
We've made progress since 2000, when Tax Freedom Day fell on May 1. But that doesn't make the bite any less painful to bear.
The Tax Foundation has a map listing the Tax Freedom Day is each state, which can be seen here.