Select Page

The Tax Foundation releases an annual “Tax Freedom Day” report, which calculates “the day when the nation as a whole has earned enough money to pay its total tax bill for year”.

This is done by looking at federal budget projections, data from the U.S. Census and the Bureau of Economic Analysis, and projections of state & local taxes. Then, all the federal, state, and local taxes are divided by the country’s income.

This year, Tax Freedom day is April 21st, 3 days later than last year. The Tax Foundation cites sluggish economic growth and recovery.

Here’s a neat graphic from the Tax Foundation, which shows the breakdown:

Cal_TFD_Web

The Tax Foundation calculates that “in 2014, Americans will pay $3.0 trillion in federal taxes and $1.5 trillion in state taxes, for a total tax bill of $4.5 trillion, or 30.2 percent of income”.

You can also visit the site to see how your state factors in, or what the Tax Freedom date is if you include federal borrowing.