October 10, 2006

Increase in Child Tax Credit Sends Families with Many Children off the Tax Rolls

by Gerald Prante

Fiscal Fact No. 69

Across the nation, nearly every income group in every state has had its taxes cut in recent years. With new data from the Internal Revenue Service (IRS) on the taxes paid for 2004, we can now see the full effects of the so-called Bush tax cuts enacted in 2001 and 2003. Because states have different demographic profiles, some states’ taxpayers benefit more than others from the tax cuts.

Since the Bush tax cuts went into effect, a growing number of tax filers have been paying no federal income taxes. Millions who paid into the federal till each year before 2001 now get every dollar back that the federal government withheld from their paychecks during the year, and then some. This trend is well documented but frequently ignored by critics of the tax cuts.

Two changes in tax law have caused this explosion in the number of “non-payers”—tax returns that have zero or even negative federal income tax liability. They are the expansion of the child tax credit from $500 to $1,000 (complete in 2003) and the creation of the 10 percent taxable income bracket (complete in 2001).

Impact of Children on Number of Non-Payers
Table 1 illustrates how these two policy changes have affected the taxpaying public in each state. Even though the percentage of taxpayers who pay no income taxes has grown in every state, the tax savings vary widely from state to state. States with a high number of children per family, such as Utah, saw larger increases in the fraction of tax returns that had no liability. In states (and the District of Columbia) where there are fewer children per family, most taxpayers who owed taxes before 2001 still owe taxes each year.

The Census Bureau ranks the states based on the percentage of each state’s population that is under 18. The District of Columbia has the smallest percentage of children of any U.S. state (ranked 51st), and also has the fewest number of people pushed off the tax rolls. The correlation is not always that exact, but in general these child-friendly tax cuts push fewer people off the rolls in states with fewer children.

Typical are Wyoming (50th lowest in the growth of non-payers, 45th lowest in percentage of children), North Dakota (48th lowest in the growth of non-payers, 47th lowest in percentage of children), and Maine (41st lowest in the growth of non-payers, 50th lowest in percentage of children). Six of the ten states with the smallest increase in non-payers also have the smallest under-18 populations.

Before 2001, almost every tax return with zero liability had adjusted gross income (AGI) under $50,000. Most were under $40,000. Since 2003, however, many tax returns in the $50,000-$75,000 income group are showing up in the non-payer category. This illustrates the dramatic decrease in the tax burdens of low-to-middle income earners that has occurred as a result of the tax cuts. Utah has seen the largest change in this income group: in 2000, about 2 percent of all returns in that income group were non-payers, while in 2004, 12 percent of those middle-income tax returns paid nothing in income taxes. In California, only 1 percent of tax returns in this bracket owed nothing in 2000, but four years later with the tax cuts fully phased in, 7 percent of the tax returns showing AGI of $50,000-$75,000 paid no income taxes to Uncle Sam.

Another factor influencing the growing number of non-payers is the increase in the “refundable portion” of the child tax credit. The opportunity to make money by filing a tax return encourages filing by individuals whose incomes are low enough that they are not required to file a return, or who had zero income withheld.

Conclusion  
Before the 2001 and 2003 tax cuts, non-paying returns were approximately one-fourth of all tax returns, and they were almost exclusively in the lower-income groups. Now almost one-third of all tax returns show the filer getting every dollar withheld back, or even more. And for the first time, a significant percentage of tax filers in the middle-income group are being pushed off the rolls. 

Because the child tax credit was doubled from $500 to $1,000 per child in 2003 with a larger refundable portion, and because a new 10 percent taxable income bracket was enacted in 2001, the number of tax returns with zero income tax liability has risen dramatically, as detailed by a comparison of IRS tax return data in 2000 and 2004. The correlation between states with the highest percentages of non-payers and those with the highest percentages of children in the population highlights the pronounced effect of the Bush tax cuts on the growing number of non-paying families with children.

Table 1: Number of Non-Paying Tax Returns Has Grown Dramatically from 2000 to 2004

State
Income Group (AGI)
Before Recent Tax Cuts
After Recent Tax Cuts
Percentage Point Increase in Returns with Zero Tax Liability
Number of Returns With Zero Tax Liability (2000)
Percentage of All Returns with Zero Tax Liability (2000)
Number of Returns with Zero Tax Liability (2004)
Percentage of All Returns with Zero Tax Liability (2004)
United States All Taxpayers
29,731,304
22.85%
41,942,378
31.51%
8.66%
Under $50,000
29,614,856
31.67%
41,093,085
44.53%
12.86%
$50,000 - $74,999
90,856
0.53%
727,765
4.06%
3.53%
$75,000 - $99,999
14,867
0.17%
93,058
0.93%
0.76%
$100,000 - $199,999
8,303
0.10%
25,362
0.26%
0.16%
$200,000 and above
2,422
0.09%
3,108
0.10%
0.01%
Alabama All Taxpayers
542,252
28.48%
709,532
37.14%
8.66%
Under $50,000
541,287
36.82%
702,777
49.61%
12.79%
$50,000 - $74,999
727
0.32%
5,881
2.51%
2.19%
$75,000 - $99,999
116
0.11%
632
0.50%
0.39%
$100,000 - $199,999
87
0.11%
206
0.20%
0.09%
$200,000 and above
35
0.15%
36
0.12%
-0.02%
Alaska All Taxpayers
44,309
13.48%
71,661
20.76%
7.28%
Under $50,000
44,106
19.10%
69,626
29.55%
10.46%
$50,000 - $74,999
168
0.38%
1,779
3.74%
3.37%
$75,000 - $99,999
21
0.08%
217
0.75%
0.67%
$100,000 - $199,999
10
0.04%
36
0.13%
0.09%
$200,000 and above
4
0.09%
3
0.05%
-0.04%
Arizona All Taxpayers
488,403
22.69%
762,770
32.15%
9.46%
Under $50,000
486,060
31.14%
745,221
44.88%
13.74%
$50,000 - $74,999
1,841
0.65%
15,201
4.75%
4.10%
$75,000 - $99,999
308
0.22%
1,774
1.01%
0.79%
$100,000 - $199,999
145
0.11%
507
0.30%
0.19%
$200,000 and above
49
0.12%
67
0.14%
0.01%
Arkansas All Taxpayers
322,159
28.80%
425,035
37.41%
8.61%
Under $50,000
321,687
36.04%
421,244
48.46%
12.41%
$50,000 - $74,999
336
0.26%
3,365
2.45%
2.19%
$75,000 - $99,999
80
0.16%
336
0.52%
0.36%
$100,000 - $199,999
46
0.12%
79
0.16%
0.03%
$200,000 and above
10
0.08%
11
0.07%
-0.01%
California All Taxpayers
3,522,822
23.70%
4,941,456
32.24%
8.54%
Under $50,000
3,498,989
33.96%
4,770,763
46.58%
12.62%
$50,000 - $74,999
18,460
0.96%
141,666
6.94%
5.99%
$75,000 - $99,999
3,214
0.31%
22,465
1.90%
1.59%
$100,000 - $199,999
1,750
0.15%
5,917
0.43%
0.27%
$200,000 and above
409
0.09%
645
0.14%
0.04%
Colorado All Taxpayers
401,465
19.15%
590,139
27.96%
8.81%
Under $50,000
399,424
27.95%
574,042
41.35%
13.40%
$50,000 - $74,999
1,627
0.55%
13,875
4.54%
3.99%
$75,000 - $99,999
218
0.14%
1,698
0.95%
0.81%
$100,000 - $199,999
145
0.09%
462
0.25%
0.16%
$200,000 and above
51
0.09%
62
0.12%
0.02%
Connecticut All Taxpayers
268,977
16.09%
391,202
23.49%
7.40%
Under $50,000
267,117
25.40%
380,659
37.92%
12.53%
$50,000 - $74,999
1,345
0.54%
8,615
3.51%
2.97%
$75,000 - $99,999
326
0.22%
1,385
0.88%
0.66%
$100,000 - $199,999
153
0.10%
486
0.26%
0.17%
$200,000 and above
36
0.05%
57
0.08%
0.02%
Delaware All Taxpayers
70,767
18.71%
102,595
25.93%
7.22%
Under $50,000
70,555
27.08%
100,816
38.53%
11.44%
$50,000 - $74,999
165
0.31%
1,534
2.69%
2.38%
$75,000 - $99,999
27
0.09%
179
0.52%
0.43%
$100,000 - $199,999
17
0.06%
62
0.18%
0.12%
$200,000 and above
3
0.04%
4
0.05%
0.00%
D.C. All Taxpayers
63,164
22.62%
75,409
27.14%
4.52%
Under $50,000
62,752
30.75%
74,104
39.39%
8.65%
$50,000 - $74,999
335
1.05%
1,050
2.88%
1.82%
$75,000 - $99,999
44
0.29%
158
0.86%
0.56%
$100,000 - $199,999
28
0.15%
87
0.37%
0.22%
$200,000 and above
5
0.05%
10
0.09%
0.04%
Florida All Taxpayers
1,839,705
24.53%
2,743,058
33.56%
9.03%
Under $50,000
1,833,894
32.39%
2,701,568
45.28%
12.89%
$50,000 - $74,999
3,991
0.45%
34,582
3.52%
3.07%
$75,000 - $99,999
925
0.23%
4,720
0.91%
0.69%
$100,000 - $199,999
625
0.16%
1,846
0.36%
0.20%
$200,000 and above
270
0.17%
342
0.17%
0.00%
Georgia All Taxpayers
905,281
24.89%
1,339,715
35.42%
10.52%
Under $50,000
902,605
34.09%
1,317,598
49.21%
15.12%
$50,000 - $74,999
2,071
0.45%
19,158
3.97%
3.52%
$75,000 - $99,999
352
0.15%
2,277
0.85%
0.69%
$100,000 - $199,999
190
0.08%
606
0.22%
0.14%
$200,000 and above
63
0.08%
76
0.09%
0.01%
Hawaii All Taxpayers
125,562
21.94%
173,262
28.59%
6.64%
Under $50,000
124,778
29.87%
168,679
39.77%
9.90%
$50,000 - $74,999
646
0.85%
3,986
4.79%
3.94%
$75,000 - $99,999
75
0.19%
473
1.02%
0.83%
$100,000 - $199,999
58
0.18%
111
0.27%
0.09%
$200,000 and above
5
0.06%
13
0.12%
0.06%
Idaho All Taxpayers
139,356
24.92%
204,956
34.49%
9.57%
Under $50,000
138,632
32.72%
199,117
45.79%
13.07%
$50,000 - $74,999
628
0.85%
5,219
6.34%
5.49%
$75,000 - $99,999
60
0.20%
503
1.29%
1.09%
$100,000 - $199,999
29
0.12%
107
0.36%
0.24%
$200,000 and above
7
0.09%
10
0.12%
0.03%
Illinois All Taxpayers
1,218,150
21.05%
1,752,365
30.41%
9.36%
Under $50,000
1,213,401
30.49%
1,714,486
44.65%
14.16%
$50,000 - $74,999
3,849
0.47%
33,213
4.03%
3.56%
$75,000 - $99,999
524
0.12%
3,667
0.77%
0.65%
$100,000 - $199,999
297
0.07%
897
0.19%
0.12%
$200,000 and above
79
0.06%
102
0.07%
0.01%
Indiana All Taxpayers
610,116
21.50%
862,672
30.22%
8.71%
Under $50,000
608,563
29.81%
848,267
42.71%
12.91%
$50,000 - $74,999
1,268
0.30%
12,891
3.04%
2.74%
$75,000 - $99,999
162
0.08%
1,236
0.54%
0.46%
$100,000 - $199,999
102
0.07%
252
0.14%
0.07%
$200,000 and above
21
0.05%
26
0.06%
0.01%
Iowa All Taxpayers
268,006
19.84%
375,261
28.12%
8.28%
Under $50,000
267,256
26.91%
367,255
39.26%
12.35%
$50,000 - $74,999
624
0.31%
7,252
3.54%
3.24%
$75,000 - $99,999
70
0.09%
627
0.60%
0.52%
$100,000 - $199,999
46
0.08%
118
0.16%
0.08%
$200,000 and above
10
0.06%
9
0.05%
-0.01%
Kansas All Taxpayers
256,608
20.99%
379,430
30.86%
9.87%
Under $50,000
255,826
29.10%
372,361
43.26%
14.17%
$50,000 - $74,999
641
0.37%
6,338
3.61%
3.25%
$75,000 - $99,999
95
0.12%
573
0.61%
0.49%
$100,000 - $199,999
35
0.05%
146
0.19%
0.13%
$200,000 and above
11
0.06%
12
0.06%
0.00%
Kentucky All Taxpayers
431,155
24.68%
571,899
32.54%
7.86%
Under $50,000
430,339
32.25%
564,959
43.91%
11.67%
$50,000 - $74,999
638
0.28%
6,168
2.58%
2.30%
$75,000 - $99,999
90
0.10%
611
0.52%
0.42%
$100,000 - $199,999
69
0.10%
142
0.16%
0.06%
$200,000 and above
19
0.09%
19
0.08%
-0.01%
Louisiana All Taxpayers
578,458
30.86%
737,937
39.48%
8.62%
Under $50,000
577,445
39.40%
731,141
51.52%
12.12%
$50,000 - $74,999
774
0.36%
5,916
2.72%
2.37%
$75,000 - $99,999
126
0.13%
653
0.57%
0.44%
$100,000 - $199,999
82
0.11%
189
0.20%
0.09%
$200,000 and above
31
0.13%
38
0.15%
0.03%
Maine All Taxpayers
126,714
20.92%
173,810
28.09%
7.16%
Under $50,000
126,360
27.51%
171,039
38.14%
10.62%
$50,000 - $74,999
294
0.36%
2,450
2.79%
2.43%
$75,000 - $99,999
40
0.12%
248
0.59%
0.47%
$100,000 - $199,999
16
0.07%
70
0.22%
0.16%
$200,000 and above
4
0.05%
3
0.03%
-0.02%
Maryland All Taxpayers
478,553
18.67%
670,826
25.45%
6.78%
Under $50,000
475,256
28.21%
649,837
39.94%
11.73%
$50,000 - $74,999
2,637
0.71%
17,439
4.51%
3.80%
$75,000 - $99,999
449
0.21%
2,878
1.17%
0.96%
$100,000 - $199,999
178
0.08%
641
0.22%
0.14%
$200,000 and above
33
0.05%
31
0.04%
-0.01%
Massachusetts All Taxpayers
495,293
15.93%
720,415
23.53%
7.61%
Under $50,000
492,651
24.31%
701,257
36.49%
12.18%
$50,000 - $74,999
2,049
0.46%
16,184
3.68%
3.22%
$75,000 - $99,999
346
0.14%
2,253
0.82%
0.68%
$100,000 - $199,999
202
0.07%
652
0.21%
0.13%
$200,000 and above
45
0.04%
69
0.06%
0.02%
Michigan All Taxpayers
952,906
20.63%
1,370,049
30.04%
9.41%
Under $50,000
949,747
30.01%
1,342,723
43.74%
13.73%
$50,000 - $74,999
2,621
0.39%
23,961
3.61%
3.22%
$75,000 - $99,999
343
0.09%
2,713
0.69%
0.60%
$100,000 - $199,999
145
0.04%
599
0.17%
0.12%
$200,000 and above
50
0.06%
53
0.07%
0.00%
Minnesota All Taxpayers
412,551
17.29%
607,385
25.23%
7.94%
Under $50,000
410,471
25.40%
589,351
37.77%
12.37%
$50,000 - $74,999
1,740
0.47%
15,823
4.22%
3.75%
$75,000 - $99,999
223
0.12%
1,767
0.80%
0.68%
$100,000 - $199,999
98
0.06%
399
0.20%
0.14%
$200,000 and above
19
0.04%
45
0.08%
0.04%
Mississippi All Taxpayers
382,989
32.64%
490,921
42.10%
9.47%
Under $50,000
382,425
40.10%
486,876
53.15%
13.05%
$50,000 - $74,999
413
0.33%
3,601
2.80%
2.46%
$75,000 - $99,999
66
0.13%
331
0.53%
0.39%
$100,000 - $199,999
54
0.15%
93
0.20%
0.05%
$200,000 and above
31
0.28%
20
0.17%
-0.11%
Missouri All Taxpayers
581,238
22.66%
804,161
31.10%
8.44%
Under $50,000
579,809
30.52%
791,730
42.84%
12.32%
$50,000 - $74,999
1,124
0.33%
10,987
3.08%
2.75%
$75,000 - $99,999
162
0.10%
1,129
0.61%
0.51%
$100,000 - $199,999
111
0.09%
274
0.18%
0.09%
$200,000 and above
32
0.08%
41
0.10%
0.02%
Montana All Taxpayers
117,498
27.70%
153,047
34.81%
7.11%
Under $50,000
117,191
34.70%
150,679
44.81%
10.11%
$50,000 - $74,999
267
0.53%
2,106
3.79%
3.26%
$75,000 - $99,999
23
0.12%
205
0.82%
0.69%
$100,000 - $199,999
11
0.08%
55
0.32%
0.24%
$200,000 and above
6
0.13%
2
0.04%
-0.09%
Nebraska All Taxpayers
170,847
21.12%
243,159
30.06%
8.94%
Under $50,000
170,303
28.37%
237,879
41.27%
12.90%
$50,000 - $74,999
434
0.38%
4,809
4.16%
3.77%
$75,000 - $99,999
61
0.13%
373
0.63%
0.50%
$100,000 - $199,999
37
0.10%
87
0.19%
0.09%
$200,000 and above
12
0.11%
11
0.09%
-0.02%
Nevada All Taxpayers
188,938
19.81%
308,810
28.26%
8.46%
Under $50,000
187,863
27.17%
299,722
39.82%
12.65%
$50,000 - $74,999
771
0.57%
7,755
4.90%
4.33%
$75,000 - $99,999
151
0.25%
911
1.12%
0.87%
$100,000 - $199,999
96
0.20%
321
0.43%
0.23%
$200,000 and above
57
0.31%
101
0.39%
0.08%
New Hampshire All Taxpayers
103,112
16.39%
151,959
23.63%
7.24%
Under $50,000
102,710
24.55%
148,016
36.04%
11.49%
$50,000 - $74,999
313
0.33%
3,438
3.51%
3.19%
$75,000 - $99,999
49
0.10%
409
0.68%
0.58%
$100,000 - $199,999
35
0.07%
88
0.15%
0.08%
$200,000 and above
5
0.03%
8
0.05%
0.02%
New Jersey All Taxpayers
762,774
18.75%
1,091,990
26.59%
7.83%
Under $50,000
758,409
29.06%
1,063,675
42.20%
13.14%
$50,000 - $74,999
3,453
0.61%
23,686
4.17%
3.56%
$75,000 - $99,999
532
0.15%
3,696
0.98%
0.82%
$100,000 - $199,999
309
0.08%
857
0.18%
0.10%
$200,000 and above
71
0.05%
76
0.05%
0.00%
New Mexico All Taxpayers
226,640
31.14%
305,699
36.96%
5.81%
Under $50,000
226,236
38.64%
302,287
48.38%
9.74%
$50,000 - $74,999
316
0.41%
3,025
3.11%
2.70%
$75,000 - $99,999
54
0.16%
292
0.59%
0.43%
$100,000 - $199,999
30
0.11%
85
0.19%
0.07%
$200,000 and above
4
0.07%
10
0.09%
0.02%
New York All Taxpayers
1,969,116
22.96%
2,695,558
31.25%
8.29%
Under $50,000
1,959,696
32.33%
2,640,181
44.95%
12.62%
$50,000 - $74,999
7,248
0.65%
46,460
4.06%
3.40%
$75,000 - $99,999
1,322
0.23%
6,807
1.05%
0.82%
$100,000 - $199,999
672
0.11%
1,876
0.27%
0.15%
$200,000 and above
178
0.08%
234
0.09%
0.02%
North Carolina All Taxpayers
846,661
23.28%
1,282,442
34.02%
10.74%
Under $50,000
844,282
31.35%
1,265,050
46.56%
15.22%
$50,000 - $74,999
1,852
0.39%
15,208
3.13%
2.74%
$75,000 - $99,999
314
0.14%
1,686
0.64%
0.50%
$100,000 - $199,999
167
0.09%
456
0.19%
0.11%
$200,000 and above
46
0.08%
42
0.06%
-0.01%
North Dakota All Taxpayers
67,347
22.24%
87,831
28.79%
6.55%
Under $50,000
67,202
28.66%
86,483
38.74%
10.08%
$50,000 - $74,999
117
0.29%
1,232
2.78%
2.50%
$75,000 - $99,999
16
0.11%
92
0.45%
0.34%
$100,000 - $199,999
10
0.10%
20
0.15%
0.05%
$200,000 and above
2
0.07%
4
0.10%
0.04%
Ohio All Taxpayers
1,101,725
19.76%
1,523,479
27.97%
8.21%
Under $50,000
1,098,465
26.55%
1,496,964
38.40%
11.84%
$50,000 - $74,999
2,681
0.34%
23,483
3.04%
2.70%
$75,000 - $99,999
326
0.10%
2,402
0.61%
0.51%
$100,000 - $199,999
198
0.08%
576
0.19%
0.11%
$200,000 and above
55
0.07%
54
0.07%
0.00%
Oklahoma All Taxpayers
393,654
26.87%
526,574
35.67%
8.81%
Under $50,000
392,895
34.56%
520,025
47.01%
12.45%
$50,000 - $74,999
599
0.33%
5,862
3.11%
2.78%
$75,000 - $99,999
92
0.12%
514
0.56%
0.44%
$100,000 - $199,999
54
0.09%
162
0.23%
0.14%
$200,000 and above
14
0.08%
11
0.05%
-0.02%
Oregon All Taxpayers
344,607
22.06%
492,984
30.73%
8.67%
Under $50,000
342,837
30.42%
481,349
42.93%
12.51%
$50,000 - $74,999
1,455
0.66%
10,216
4.46%
3.79%
$75,000 - $99,999
213
0.21%
1,097
0.91%
0.70%
$100,000 - $199,999
86
0.10%
293
0.28%
0.18%
$200,000 and above
16
0.06%
29
0.10%
0.04%
Pennsylvania All Taxpayers
1,220,509
21.02%
1,684,203
28.98%
7.96%
Under $50,000
1,216,760
29.04%
1,655,395
41.17%
12.12%
$50,000 - $74,999
3,063
0.38%
25,312
3.06%
2.68%
$75,000 - $99,999
407
0.11%
2,731
0.61%
0.50%
$100,000 - $199,999
212
0.07%
699
0.17%
0.11%
$200,000 and above
67
0.06%
66
0.06%
-0.01%
Rhode Island All Taxpayers
96,059
19.43%
131,612
26.31%
6.88%
Under $50,000
95,749
27.27%
129,096
38.38%
11.11%
$50,000 - $74,999
247
0.36%
2,213
3.10%
2.74%
$75,000 - $99,999
38
0.11%
241
0.58%
0.47%
$100,000 - $199,999
20
0.07%
57
0.14%
0.08%
$200,000 and above
5
0.06%
5
0.05%
-0.01%
South Carolina All Taxpayers
467,074
25.91%
655,493
35.54%
9.62%
Under $50,000
465,951
33.60%
647,225
47.20%
13.59%
$50,000 - $74,999
872
0.40%
7,196
3.18%
2.78%
$75,000 - $99,999
164
0.17%
819
0.68%
0.51%
$100,000 - $199,999
71
0.09%
232
0.23%
0.14%
$200,000 and above
16
0.07%
21
0.08%
0.01%
South Dakota All Taxpayers
85,159
23.98%
115,767
31.96%
7.98%
Under $50,000
84,991
30.71%
113,680
42.20%
11.48%
$50,000 - $74,999
143
0.31%
1,938
3.82%
3.51%
$75,000 - $99,999
9
0.06%
129
0.59%
0.54%
$100,000 - $199,999
12
0.10%
19
0.13%
0.02%
$200,000 and above
4
0.10%
1
0.02%
-0.08%
Tennessee All Taxpayers
630,749
24.57%
871,917
33.45%
8.88%
Under $50,000
629,603
31.96%
862,306
44.96%
13.00%
$50,000 - $74,999
831
0.26%
8,463
2.51%
2.25%
$75,000 - $99,999
173
0.13%
867
0.52%
0.39%
$100,000 - $199,999
108
0.10%
245
0.17%
0.08%
$200,000 and above
34
0.09%
36
0.08%
-0.01%
Texas All Taxpayers
2,441,164
26.97%
3,516,155
37.28%
10.31%
Under $50,000
2,436,466
36.26%
3,471,333
50.91%
14.65%
$50,000 - $74,999
3,475
0.33%
39,142
3.49%
3.16%
$75,000 - $99,999
705
0.13%
4,273
0.67%
0.54%
$100,000 - $199,999
397
0.07%
1,272
0.19%
0.12%
$200,000 and above
121
0.07%
135
0.07%
0.00%
Utah All Taxpayers
230,450
24.47%
349,911
35.12%
10.65%
Under $50,000
227,277
33.06%
329,922
47.05%
13.99%
$50,000 - $74,999
2,805
2.07%
17,484
11.95%
9.87%
$75,000 - $99,999
270
0.45%
2,140
2.89%
2.44%
$100,000 - $199,999
79
0.18%
342
0.58%
0.41%
$200,000 and above
19
0.14%
23
0.14%
0.01%
Vermont All Taxpayers
59,474
19.87%
83,061
27.12%
7.25%
Under $50,000
59,263
26.85%
81,644
37.64%
10.79%
$50,000 - $74,999
177
0.43%
1,221
2.81%
2.39%
$75,000 - $99,999
18
0.10%
160
0.71%
0.61%
$100,000 - $199,999
14
0.09%
33
0.18%
0.09%
$200,000 and above
2
0.04%
3
0.06%
0.02%
Virginia All Taxpayers
637,123
19.09%
910,930
26.09%
7.01%
Under $50,000
634,490
28.06%
890,369
39.88%
11.81%
$50,000 - $74,999
2,063
0.44%
17,501
3.50%
3.07%
$75,000 - $99,999
335
0.13%
2,396
0.79%
0.65%
$100,000 - $199,999
183
0.07%
619
0.18%
0.11%
$200,000 and above
52
0.07%
45
0.04%
-0.02%
Washington All Taxpayers
514,965
18.57%
759,343
26.54%
7.97%
Under $50,000
512,165
27.29%
739,654
39.60%
12.30%
$50,000 - $74,999
2,215
0.52%
16,962
3.90%
3.38%
$75,000 - $99,999
314
0.14%
2,066
0.82%
0.67%
$100,000 - $199,999
198
0.10%
598
0.25%
0.15%
$200,000 and above
73
0.12%
63
0.09%
-0.02%
West Virginia All Taxpayers
195,111
26.02%
245,431
32.82%
6.80%
Under $50,000
194,927
32.94%
243,591
43.39%
10.45%
$50,000 - $74,999
143
0.15%
1,639
1.60%
1.45%
$75,000 - $99,999
26
0.07%
159
0.34%
0.27%
$100,000 - $199,999
15
0.07%
39
0.13%
0.06%
$200,000 and above
0
0.00%
3
0.04%
0.04%
Wisconsin All Taxpayers
468,210
18.03%
693,563
26.46%
8.43%
Under $50,000
466,313
25.60%
677,131
38.34%
12.74%
$50,000 - $74,999
1,579
0.38%
14,616
3.54%
3.16%
$75,000 - $99,999
198
0.10%
1,471
0.64%
0.54%
$100,000 - $199,999
102
0.08%
322
0.19%
0.11%
$200,000 and above
18
0.05%
23
0.05%
0.01%
Wyoming All Taxpayers
54,414
23.14%
69,670
28.59%
5.45%
Under $50,000
54,280
31.26%
68,367
40.61%
9.35%
$50,000 - $74,999
104
0.30%
1,158
3.06%
2.76%
$75,000 - $99,999
13
0.09%
114
0.58%
0.48%
$100,000 - $199,999
11
0.12%
28
0.21%
0.09%
$200,000 and above
6
0.17%
3
0.07%
-0.10%

Source: Internal Revenue Service and Tax Foundation calculations

Note: All figures are from the IRS Individual Income Tax Data System for all returns filed in that year. More returns were filed for these tax years than appear in the table, due to many factors such as late filing. Unfortunately, the IRS does not re-release state-by-state data to reflect more updated information about income earned in various years. For this reason, the number of nonpaying returns shown in the table nationwide for 2000 is 29.7 million, while in more updated IRS data the is given as 32.5 million. As a result, some rates in this table may differ from previously published tables. However, for most tax rates and percentages, these effects are likely to be small.

Attached Files

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