Today is Tax Freedom Day, the day on which Americans will have earned enough money to pay all federal, state, and local taxes for the year:

Tax Freedom Day will arrive on April 9 this year, the 99^th day of 2010, according to the Tax Foundation’s annual calculation using the latest government data on income and taxes. Americans will work well over three months of the year – from January 1 to April 9 – before they have earned enough money to pay this year’s tax obligations at the federal, state and local levels.

 

This year’s Tax Freedom Day is one day later than in 2009, but more than two weeks earlier than in 2007. The shift toward a lower tax burden since 2007 has been driven by three factors: (1) The recession has reduced tax collections even faster than it has reduced income; (2) President Obama and the Congress have enacted large but temporary income tax cuts for 2009 and 2010, just as President Bush did in 2008; and (3) Two significant taxes were repealed for 2010 as part of previous legislation, the estate tax and the so-called PEP and Pease provisions of the income tax.

 

 
Each state has its own Tax Freedom Day. Alaska’s is earliest on March 26, and Connecticut celebrates last on April 27. High-income states pay much more in federal taxes, and they often have higher state-local taxes as well. Joining Connecticut in the latest celebrations are New Jersey, New York, Maryland and Washington. Alaska is joined in early celebration by Louisiana, South Dakota, Mississippi and West Virginia.

 

Rank	State	Days Worked to Pay Taxes	Tax Freedom Day
1	Connecticut	117	April 27
2	New Jersey	115	April 25
3	New York	113	April 23
4	Maryland	109	April 19
5	Washington	105	April 14
6	Massachusetts	104	April 14
7	California	104	April 14
8	Minnesota	103	April 13
9	Vermont	103	April 13
10	Virginia	103	April 13
Average	United States	99	April 9
41	Kentucky	93	April 3
42	Alabama	92	April 2
43	Nevada	92	April 2
44	Tennessee	91	April 1
45	New Mexico	91	April 1
46	West Virginia	89	March 30
47	South Dakota	88	March 29
48	Mississippi	87	March 28
49	Louisiana	85	March 26
50	Alaska	85	March 26

 

The Center on Budget and Policy Priorities criticizes the Tax Foundation's methodology here.