The top 1 percent of earners in Georgia are taxed at an effective rate of 7 percent, compared with the state’s 9.8 percent tax rate on the middle 20 percent of income earners, according to a new 24/7 Wall St. analysis.

The study, which used data from a 2018 report by the Washington-based Institute on Taxation and Economic Policy (ITEP), did not include federal taxes paid. Georgia ranked 32nd on the study’s list of the most tax-friendly states for the rich.

On average, the top 1 percent of earners in the state take in $1.2 million annually, according to 24/7 Wall St.

Nationwide, the top-earning 1 percent of families pay 7.4 percent of what they make toward state and local levies, the ITEP study concluded. The middle 20 percent of U.S. earners, in contrast, paid more – 9.9 percent.

States with no income tax – or a very low income tax – tended to be the most friendly to wealthy individuals, 24/7 Wall St. reported. That’s because those states tend to rely more on more regressive taxes, placing more of a burden on poorer households, the study found.


Which States Are the Most Tax-Friendly to the Wealthy?

RankStateEffective Tax Rate for Top 1% of Income EarnersEffective Tax Rate for Middle 20% of Income EarnersAverage Income for Top 1%State and Local Revenue From Sales TaxesState and Local Tax Revenue From Income Taxes
1Nevada1.9%7.6%$1.7 million39.4%0%
2Florida2.3%8.1%$2.3 million34.1%0%
3South Dakota2.5%8.9%$1.5 million39.6%0%
4Alaska2.5%4.3%$1.1 million8.3%0%
5Wyoming2.6%7.5%$2 million25.2%0%
6Tennessee2.8%8.5%$1.3 million41.5%1.5%
7Washington3%11%$1.6 million46.4%0%
8New Hampshire3.0%8.1%$1.5 million0%1.4%
9Texas3.1%9.7%$1.6 million35.4%0%
10North Dakota4.5%8.5%$1.3 million25.6%7%
12Arizona5.9%9.4%$1.1 million38.7%16%
13Pennsylvania6%11.1%$1.3 million17.2%26.2%
14New Mexico6%10.2%$845,40037.8%17.4%
15Louisiana6.2%10%$1 million41%15.7%
16Oklahoma6.2%10.7%$1.1 million33.3%22.1%
17Missouri6.2%9%$1.2 million27.3%28.6%
18Michigan6.2%9.2%$1.3 million22.6%24.2%
19North Carolina6.4%9.4%$1.1 million25%30.3%
20Colorado6.5%8.9%$1.5 million26.5%25.4%
21Ohio6.5%10.7%$1.1 million28.2%25.6%
22Massachusetts6.5%9.3%$2.5 million13.8%32.7%
23Montana6.5%7.1%$1.1 million0%29.7%
24Delaware6.5%5.6%$1 million0%25.8%
25Utah6.7%8.2%$1.3 million24.8%29.6%
28Indiana6.8%11.1%$1 million28.4%25.5%
29South Carolina6.8%8.1%$992,30022.1%22.7%
30Arkansas6.9%10.8%$1.1 million37.5%23.5%
31Virginia7%9.2%$1.4 million13.8%31.9%
32Georgia7%9.8%$1.2 million24.1%27.7%
33Idaho7.2%8.1%$1 million26.5%25.8%
34Kansas7.4%10.6%$1.3 million32.1%17.1%
35West Virginia7.4%8.5%$702,40018.4%25.8%
36Illinois7.4%12.6%$1.7 million19.3%19%
37Wisconsin7.7%10.1%$1.2 million19.8%27.1%
39Rhode Island7.9%9.5%$1.1 million16.6%21%
40Oregon8.1%9.1%$1.1 million0%41.7%
41Connecticut8.1%12.2%$3.2 million14.5%29.2%
43Nebraska8.7%10.8%$1.1 million22.4%23.1%
45Maryland9%10.6%$1.5 million12.4%37.8%
46New Jersey9.8%10.1%$1.9 million15.4%22.2%
47Minnesota10.1%9.7%$1.5 million17.1%31.9%
49New York11.3%12.4%$2.5 million16.7%32.7%
50California12.4%8.3%$2.2 million21.9%33.8%

Source: 24/7 Wall St.; Institute on Taxation and Economic Policy