Arizona tax burden lighter than many states

Arizona’s tax burden is a lighter load than it is for the nation as a whole, according to the Tax Foundation’s annual  study.


Tax Freedom Day in Arizona is April 15. The date signifies when an Arizona taxpayer has paid all his or her local, state and federal taxes for the year, according to the Tax Foundation calculations. 

Nationally, Tax Freedom Day falls on April 24, or 114 days into the year. It only takes 105 days in Arizona.

Arizona’s ranking reflects lower taxes but also lower per capita income for its residents.

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, the foundation reported.

Tax Freedom Day is one day later than last year due mainly to the country’s continued steady economic growth, which is expected to boost tax revenue especially from the corporate, payroll, and individual income tax. 

Americans will collectively spend more on taxes in 2015 than they will on food, clothing, and housing combined.

If you include annual federal borrowing, which represents future taxes owed, Tax Freedom Day would occur 14 days later on May 8.

Tax Freedom Day is a significant date for taxpayers and lawmakers because it represents how long Americans as a whole have to work in order to pay the nation’s tax burden.

Residents of Louisiana, ranked No. 1, will bear the lowest average tax burden in 2015, with Tax Freedom Day arriving for them April 2. Also early are Mississippi, April 4, and South Dakota, April 8.

Arizona ranks No. 17 in the Tax Foundation study. 

States with higher income and higher taxes states celebrate Tax Freedom Day later.  Connecticut and New Jersey on May 13, and New York on May 8.