In some states, residents have to work days longer than in others before they start working for themselves — rather than to pay their taxes.
So-called Tax Freedom Day is the day when the nation as a whole has earned enough money to pay its federal, state and local taxes. This year, Tax Freedom Day falls on April 24, and it’s the day in which we’ve earned enough to foot our $4.99 trillion 2016 tax bill (that’s 31% of the national income), according to the Tax Foundation, a nonpartisan tax research organization.
In some states — including New York, Connecticut, New Jersey and Massachusetts — residents will have to work into May before they achieve tax freedom. That’s largely because these are higher tax and higher income states. In others — like Mississippi, Tennessee and Alabama — residents have already achieved tax freedom.
Fun fact: The earliest ever Tax Freedom Day came on January 22 in the year 1900, when Americans paid just 5.9% of their income in taxes. The latest was on May 1, 2000, when we paid 33%.