What Texas’ top 1% pay in taxes

AUSTIN (KXAN) — Just because Texas doesn’t have a state income tax doesn’t mean the top 1% aren’t already paying millions in taxes.

SmartAsset , a financial technology company, said the top 1% of earners typically pay much more in taxes than many other Americans.

In the Lone Star State, the top 1% have the fourth highest tax payments in the United States.

According to the company’s study, the top 1% in Texas paid a total of $81,417,526 in income taxes, which followed behind California ($165,087,786), New York ($99,157,333), and Florida ($91,942,807).

Texas placed eighth in the top 10 states where the top 1% paid the highest portion of the income tax base

Data from the study showed the total income tax share paid by the top 1% in Texas was 46.7%. Nationwide, the group contributes 45% of total personal income taxes collected.

Texas also placed eighth in the top 10 states with the highest effective tax rates on the top 1% of earners.

According to SmartAsset, the average effective tax rate on 1% earners in Texas was 26.01%, while the average effective tax rate for all Texas taxpayers was 14.6%.

Nationwide, the top 1% pay a 25.95% effective tax rate, which the study said “yielded a total of $993.7 billion in income taxes paid by the top 1% over one year.”

SmartAsset said it looked at the most recent IRS tax return data to conduct its study and find out how much the top 1% of earners pay in taxes.

For the latest news, weather, sports, and streaming video, head to CW33 Dallas / Ft. Worth.