Montanans earned enough to pay all their taxes this year by April 17. A few states have yet to pay off their tax obligations. On average Tax Freedom Day in the US in 2017 was April 23.
Each year, The Tax Foundation identifies Tax Freedom Day, which is the day when the nation as a whole has earned enough money to pay its total tax bill – or our tax burden — for the year. Tax Freedom Day is one day later than last year.
Tax Freedom Day takes all federal, state, and local taxes and divides them by the nation’s income. In 2015, Americans will pay $3.28 trillion in federal taxes and $1.57 trillion in state and local taxes, for a total tax bill of $4.85 trillion, or 31 percent of national income.
Montana is 20th in the ranking of states to first reach Tax Day. Louisiana is first, meeting its tax obligations on April 2. Mississippi is second on April 4. Connecticut and New Jersey are last meeting with both meeting their obligations on May 13. North Dakota is 42nd, South Dakota is third and Wyoming is 32nd.
Americans will collectively spend more on taxes in 2015 than they will on food, clothing, and housing combined.
This year, Americans will work the longest—46 days—to pay federal, state, and local individual income taxes. Payroll taxes will take 26 days to pay, followed by sales and excise taxes (15 days), corporate income taxes (10 days), and property taxes (10 days). The remaining six days are spent paying estate and inheritance taxes, customs duties, and other taxes.
Americans will pay $3.3 trillion in federal taxes and $1.5 trillion in state and local taxes, for a total bill of more than $4.8 trillion, or 31 percent of the nation’s income.
If annual federal borrowing is included, which represents future taxes owed, Tax Freedom Day would occur 14 days later on May 8.