The average American will pay $524,625 in taxes throughout their life. If you live in Michigan, that number is a bit lower, sitting at $487,842.
That figure is nearly a third (34.7%) of all estimated lifetime earnings ($1,494,986) spent on taxes.
Tax on earnings is where most tax will come from, with the average American paying $270,414 in a lifetime just on their wages. In Michigan, the average person will pay about $253,000.
Michigan ranks 27th from greatest to least cost of taxes on average among all states.
The average resident of Michigan will pay the following over their lifetime:
- Tax on earnings: $253,080
- Tax on personal expenses: $44,479
- Tax on property: $149,581
- Tax on cars: $40,702
The most expensive state for taxes on income, property, spending and cars is New Jersey, with an estimated $987,117 over a lifetime. The least cumbersome for taxes is West Virginia, with residents paying about $358,407 over a lifetime.
The study, collected by Self Inc., accounts specifically for tax on income and specific expenditure categories: cars, homes, clothing, food/drink, entertainment, and personal care. Other potential expenditures that may cause taxes to be paid throughout an individual’s life are not included in this study.
