Texas Ranks No. 7 In Tax Burden Analysis, Study Finds

AUSTIN, Texas (TXAN 24) — Texas ranks seventh nationally for average tax due as a share of median household income, according to a new analysis of IRS Statistics of Income and U.S. Census Bureau data.

The analysis found the average Texas tax due per filer is $6,678, compared with a median household income of $67,400. That puts the average tax due at 9.91% of median household income.

Texas ranked behind South Dakota, North Dakota, Florida, Wyoming, Nevada and Tennessee in the analysis.

South Dakota recorded the highest ratio at 11.58%, while Hawaii had the lowest rate nationally, according to the analysis.

The study identifies states with what it describes as the greatest need for Offers in Compromise, a federal program that can allow qualifying taxpayers to settle certain tax debts for less than the full amount owed.

The analysis placed Texas ahead of Idaho, Montana and Alabama among the top 10 states.

For Texas households, the findings highlight the relationship between tax obligations and household income, although the percentage does not represent the overall tax burden paid by the typical Texas household.

The analysis was based on IRS Statistics of Income and U.S. Census Bureau data.