An AP-NORC poll found that two-thirds of Americans view federal income (67%), state sales (62%), and property taxes (69%) as excessive. Beyond this, many middle-income earners believe they bear the highest tax burden.
But how much does the average American actually pay in taxes over a lifetime?
To answer this, the Dancing Numbers team analyzed how much tax an average person is estimated to pay in each state by looking at tax rates and examining income and expenditure trends nationwide.
Key insights from the study
- The average American will pay $497,804 in taxes throughout their lifetime — that’s 26.7% of all estimated lifetime earnings ($1,867,441) spent on taxes.
- Residents of New Jersey will pay the most in lifetime taxes ($755,493), while people in Mississippi will pay the least ($343,885).
- Tax on earnings is where most tax will come from, with the average American paying $325,561 in a lifetime just on their wages.
- Owning a car will cost an additional $1,437 per vehicle in tax payments alone, totaling $5,747 across the average four cars owned in a lifetime.
- Tax on the property will set the average homeowner back an additional $121,221 on top of the purchase price and running costs.
- Taxpayers in New Jersey will pay the most in property taxes ($367,446) over their lifetime, followed by those in New Hampshire ($256,432) and Connecticut ($255,606), making homeownership significantly more expensive.
- Taxpayers in Kansas will pay the most in car taxes over their lifetime ($8,603), followed by those in California and Illinois, each paying $8,316. These amounts include vehicle purchase and registration costs.
- Taxpayers in Tennessee will pay the most on everyday expenses ($65,703), followed by those in Louisiana ($65,696), covering food, clothing, personal care, and entertainment.

How Much An Average American Will Pay In Their Lifetime
Lifetime taxes go beyond just income tax. Our analysis reveals that an average American will pay a total of $497,804 in taxes over their lifetime. This means, on average, an American citizen is spending a quarter (26.7%) of their lifetime earnings ($1,867,441) on various taxes.
While this national average provides a benchmark, tax burdens vary significantly by state, influenced by property values, income levels, and differing state tax policies. That’s why some state residents bear higher lifetime tax costs while some bear lower.
The following chart breaks down the typical American’s lifetime tax contributions across key categories.
Top 5 States with the Highest Lifetime Taxes Paid
#1. New Jersey
New Jersey leads the nation with a 38.5% lifetime tax burden, amounting to $755,493in total taxes paid by a resident in their lifetime, which is almost 100% more than the lifetime tax paid by a resident in the neighboring state of Delaware ($395,216).
New Jersey has the highest property tax burden in the U.S. at $367,446, which is 3.03x the national average ($121,221) and 1.43x higher than New Hampshire ($256,432). It is also 12.39x higher than Alabama ($29,653), making homeownership in New Jersey significantly more expensive than anywhere else in the country.
New Jersey residents bear the heaviest tax burden in the U.S., significantly impacting their long-term financial well-being.
New Jersey ranks #1 in property taxes, #22 in income taxes, #30 in sales taxes, and #12 in vehicle levies.
#2. New York
New York residents face a 35.9% lifetime tax burden, totaling $674,663. Income taxes make up the largest share at$356,130, followed by $255,234 in property taxes, $58,711 in retail taxes, and $4,588 in car taxes.
While New York ranks high in retail and income taxes, its property tax burden is lower than New Jersey’s.
The state remains one of the most tax-heavy in the country, significantly reducing residents’ long-term purchasing power.
New York ranks #4 in property taxes, #14 in income taxes, #10 in sales taxes, and #39 in vehicle levies.
#3. Connecticut
Connecticut residents face a 34.5% lifetime tax burden, totaling $686,655.
Income taxes make up the largest portion at $380,070, while property taxes contribute $255,606, though still lower than New Jersey.
Connecticut ranks #3 in property taxes, #5 in income taxes, #33 in sales taxes, and #14 in vehicle levies.
#4. Illinois
Illinois residents pay 33.9% in lifetime taxes, totaling $644,778, which is nearly one-third more than the national average of $497,804.
They pay almost $222,060 more than Kentucky ($422,718, 22.2%) and $195,083 more than Indiana ($449,695, 23.3%), nearly 50% more than both states.
Property taxes contribute $202,866, while retail taxes add $60,817.
Notably, Illinois ranks second in estimated lifetime car tax payments at $8,316, further adding to the overall tax burden for residents.
Illinois ranks #6 in property taxes, #7 in income taxes, #8 in sales taxes, and #2 in vehicle levies.
#5. Massachusetts
Massachusetts residents face a 32.9% lifetime tax burden ($679,404), significantly higher than its two neighbors, Maine (26.4%, $509,591) and Vermont (29.5%, $611,358). Also, a Massachusettsan pays nearly 33% higher lifetime taxes than Mainer, i.e. $169,813 more.
Income taxes account for the largest share at $400,590, while property taxes contribute $228,637, ranking among the highest in the country.
With one of the highest overall tax burdens, Massachusetts remains costly for long-term financial planning.
Massachusetts ranks #5 in property taxes, #2 in income taxes, #35 in sales taxes, and #15 in vehicle levies.
Breaking Down the Top States by Tax Category
When it comes to taxes, not all states are created equal. Below is the breakdown of states in various tax categories, from income and property taxes to sales and car taxes.
✅ Highest Income Tax: Oregon – $401,175 paid in lifetime income taxes.
✅ Highest Property Tax: New Jersey – $367,446 in lifetime property taxes.
✅ Highest Sales Tax: Tennessee – $65,703 in lifetime sales taxes.
✅ Highest Car Tax: Kansas – $8,603 in lifetime vehicle taxes.
✅ Highest Total Lifetime Tax: New Jersey – $755,493 in total taxes over a lifetime
Migration from High-Tax to Low-Tax States
Recent data shows a clear migration trend where residents are leaving high-tax states like New York (35.9% tax burden), New Jersey (38.5%), and California (30.9%) for low-tax states such as Florida (27.1%), Texas (26.0%), and Tennessee (21.9%).
High income taxes and rising property costs are pushing individuals and businesses toward states with no income tax and lower overall tax burdens.
Florida and Texas are now top destinations, benefiting from a surge in wealthy migrants and millennials seeking financial relief. California alone lost over 87,000 workers, mainly due to its high living costs and taxes.
With lower taxes, affordability, and better job opportunities, this state-to-state migration trend continues to reshape the U.S. economic and political landscape.
Which States Offer the Best Tax-to-Earnings Ratio?
Not all high-tax states put residents at a financial disadvantage.
Connecticut and Massachusetts offer higher lifetime earnings, enabling residents to retain a competitive net income despite higher taxes.
- Connecticut: $1,990,170 lifetime earnings, $686,655 in taxes (34.5% tax burden).
- Massachusetts: $2,067,707 lifetime earnings, $679,404 in taxes (32.9% tax burden).
Residents here keep over 65% of their earnings, making these states financially viable.
Conversely, lower wages in low-tax states can offset the benefits of tax savings.
- Wyoming: 20.7% tax burden, but lifetime earnings are $1,894,819, leading to lower net income than high-earning states.
- West Virginia: 22.2% tax burden, but lifetime earnings of $1,678,887, making net income less competitive than in states with higher wages.
While Connecticut and Massachusetts offer one of the best tax-to-earnings ratios, low-tax states like West Virginia and Wyoming may not always be the better financial choice due to lower incomes.
Final Thoughts
With lifetime tax burdens exceeding half a million in many states, where most Americans live, their long-term financial security is significantly influenced.
States like New Jersey and New York continue to impose high income and property taxes, while low-tax states like Texas and Tennessee attract residents seeking financial relief.
As tax reform discussions gain momentum, including Trump’s calls to replace income taxes with tariffs, the debate over fair and sustainable taxation will shape the economic landscape.
Whether shifting to consumption-based taxation or reducing income tax reliance, understanding how tax policies affect earnings, spending, and migration patterns remains essential for policymakers and taxpayers.
Methodology
This study estimates lifetime taxes paid by individuals across U.S. states, covering income, property, and vehicle, and spending taxes on clothing, food, drink, entertainment, and personal care.
Based on state and federal tax rates, property tax reports, and consumer expenditure surveys, the analysis provides a comprehensive view of an individual’s lifetime tax burden across different states.
We used median individual earnings data for high school graduates from the American Community Survey (2023) and applied a 5% growth adjustment for 2024. Taxes are calculated for single filers, considering state and federal income taxes, FICA payments, and SmartAsset’s tax calculator, assuming consistent tax rates over 45 working years.
Property taxes are determined using state-specific median property tax rates from Business Insider report. We assume that homeownership begins at age 38 (NAR Report) and continues until age 79.3, which is the average life expectancy (UN Population Data).
Vehicle taxes are based on the Toyota RAV4, the most sold car in the U.S., priced at $28,675. Sales tax rates for vehicles are sourced from multiple sources, including Factory Warranty List and World Population Review. We assume individuals start driving at age 20, continue until age 70, and own four cars in their lifetime (one every 12.5 years)
Spending taxes are calculated using state sales tax rates from the Tax Foundation, applied to food, clothing, entertainment, and personal expenditures based on the Consumer Expenditure Survey (CEX).