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Tax Freedom Day

April 14th is the day that Ohioans will have paid their federal, state, and local tax obligations. Ohio Tax Freedom Day actually hits about a week before the national average. The Buckeye State is the 20th state to reach Tax Freedom Day.

"There's four states on the 14th and there's a few days before you that have ties. Overall the state will rank 23rd," said Lyman Stone with the Tax Foundation.

Stone says Ohio is middle of the pack both nationally and regionally when it comes to tax burden.

Tax burden can be influenced not only by tax policy in a state, but also the incomes of people living there since those with higher incomes pay more tax and those with lower incomes pay less.

Stone estimates Ohioans will pay 28.31 percent of their income to taxes.

"Americans will pay about $4.5 trillion in state, local, and federal taxes. On the other hand, they'll pay about $4.3 trillion on housing, clothing, and food," Stone said.

The states with the earliest Tax Freedom Days are Louisiana on March 30, Mississippi on Apr 2, and South Dakota on Apr 4. The latest dates fall in New Jersey and Connecticut on May 9, and New York on May 4.

The Tax Foundation says Americans will spend 42 days working to pay off income taxes, 15 days for excise taxes, and 11 days for property taxes.

Historically, the date for Tax Freedom Day has fluctuated significantly. The latest-ever nationwide Tax Freedom Day was May 1, 2000 - meaning that Americans paid 33.0% of their total income in taxes. A century earlier, in 1900, Americans paid only 5.9% of their income in taxes, meaning Tax Freedom Day came on January 22. 

 

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