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Individual income tax returns, by state, 2007.

The Economic Stimulus Act of 2008, which was signed into law on February 13, 2008, provided several individual and businesses tax benefits designed to boost the economy. One of the provisions of this act provided an economic stimulus payment to individuals who had qualifying income of at least $3,000 or a net income tax liability. Individuals received a stimulus payment based on their Tax Year 2007 returns, so many individuals filed tax returns even though they were not otherwise required to file. In total, there were 154.7 million individual tax returns filed for Tax Year 2007. (1) Of those, an estimated 12.5 million individual income tax returns were filed solely to receive a stimulus payment.

The Statistics of Income (SOI) annually publishes "Historical Table 2," showing individual income and tax data by State and size of adjusted gross income (AGI). These data are extracted from the population of returns filed for a given tax year, and are collected as returns are processed by the Internal Revenue Service for administrative purposes. The Tax Year 2007 Historical Table 2 published in the spring 2009 issue of the SOI Bulletin included returns filed just to receive the economic stimulus payment. This makes comparisons to previous and later years' data very difficult. To ensure a consistent time series, SOI developed a State-level data file from an expanded statistical sample of returns filed for Tax Year 2007, which allows it to produce State-level estimates that exclude returns filed just to receive an economic stimulus payment (see Data Sources and Limitations section for details on this sample). This article presents data from this file (Table 1).

Excluding the additional tax returns filed solely for the economic stimulus payment, individual taxpayers filed approximately 142.2 million individual income tax returns for Tax Year 2007. The AGI reported

on these returns totaled slightly less than $8.7 trillion. In this article, selected sources of income, deductions, and tax components are reviewed at the State level. These include salaries and wages, net capital gain in AGI, business or profession net income, AGI, total itemized deductions, the alternative minimum tax (AMT), and income tax.

Selected Sources of Income

Salaries and wages, as reported on the individual tax return, are amounts of compensation primarily for personal services. (2) This category includes items such as: salaries, wages, commissions, bonuses, tips, etc. Figure A shows the top 10 States with the highest average salaries and wages reported for Tax Year 2007. The average salaries and wages per individual tax return for the United States as a whole was $48,558, as reported on about 120.9 million returns. The highest average salaries and wages was reported in the category labeled "Other Areas," $95,650, although this group represented only 0.7 percent of the total salaries and wages reported for Tax Year 2007. Other Areas, which will be treated as a separate "State" throughout this analysis, includes returns filed by U.S. citizens living abroad, members of armed forces stationed overseas, and residents of Puerto Rico with income from sources outside Puerto Rico or with income earned as U.S. government employees. About 60 percent of these returns are from U.S. citizens living abroad, and these returns report appreciably higher salaries, other income, and taxes compared to the other areas included in this category. The two States with the next highest average salaries and wages were Connecticut, at $70,362, and New Jersey, at $64,651. Connecticut, with the second highest average salaries and wages, represented 1.8 percent of the total, while New Jersey represented 4.0 percent. The State that represented the largest percentage of total salaries and wages was California, with 12.9 percent of the total and average salaries and wages of $54,440, the eighth highest.

Business or profession net income or loss is a source of income or loss reported by individuals who are sole proprietors of a nonfarm business, including self-employed members of a profession. The top 10 States with the highest average business or profession net incomes are shown in Figure B. The average business or profession net income was $12,326, reported on nearly 22.9 million returns. The top three States with the highest average business or profession net income were the following: Other Areas, at $26,591, Connecticut, at $22,527, and the District of Columbia, at $19,443. Other Areas ranked highest in average business or profession net income but only represented 0.4 percent of the nation's total. Just as with salaries and wages, California represented the largest percentage, of all business or profession net income, 16.9 percent. California had more than 3 million returns that reported sole proprietorship net income or losses, and the average net income on these returns was $15,692.

Capital gain or loss is the combination of net short-term and long-term gain or loss from sales of capital assets. The net loss allowed to be included in AGI is limited to $3,000 ($1,500 for married filing separate filers). Figure C shows the top 10 States with the highest average net capital gain (less loss). For Tax Year 2007, net capital gain (less loss) was reported on approximately 18.7 percent (26.6 million) of all returns, and the average capital gain reported on those returns was $33,624. The top three States with the highest average net capital gain (less loss) were the following: Wyoming, at $85,967, Nevada, at $74,048, and the District of Columbia, at $63,348. However, each of these States represented a small percentage of total capital gains (less loss) reported for 2007 (Wyoming represented 0.5 percent, Nevada represented 1.5 percent, and the District of Columbia represented just 0.4 percent). Once again, California reported the largest share of the U.S. total, 14.8 percent, followed by New York, with 12.7 percent. Of the top 10 States with the highest average capital gain, the State with the highest percentage of returns reporting this source of income was Connecticut, with 25.8 percent of all returns filed by Connecticut residents, followed by Other Areas, at 24.4 percent, and Massachusetts, at 23.5 percent.

Adjusted gross income is gross income less all adjustments, such as payments to Individual Retirement Arrangements (IRAs), alimony paid, certain student loan interest, and Figure D shows the top 10 States with the highest average AGI. The average AGI for the nation was $61,089. Connecticut had the highest average AGI, at $95,920, followed by Other Areas, at $87,826, and the District of Columbia, at $81,690. For Tax Year 2007, AGI reported by the top 10 States with the highest averages represented about 35.8 percentage of total U.S. AGI, with California having the largest percentage, 13.0 percent.

Total Itemized Deductions

Figure E shows the top 10 States with the highest average total itemized deductions for Tax Year 2007. Together, the top 10 States with the highest average itemized deductions represented 40.4 percent of total itemized deductions. Average itemized deductions for the whole U.S. were $26,464 and were reported on just over 50 million returns. The top five States with the highest average total itemized deductions were: California, at $36,440, the District of Columbia, at $33,958, New York, at $33,435, Other Areas, at $32,098, and Connecticut, at $31,395. California, with the highest average itemized deductions, also represented the largest percentage of total U.S. itemized deductions, 17.4 percent of the total amount reported. New York followed with 8.8 percent of the U.S. total. The percentage of returns reporting itemized deductions for the United States was 35.2 percent. In contrast, almost 50 percent of Maryland filers reported itemized deductions, the highest share among any State in the top 10. Maryland's average itemized deductions placed it ninth in the overall ranking.

The Alternative Minimum Tax and Income Tax

Figure F displays the top 10 States with the highest average alternative minimum tax (AMT) for Tax Year 2007. The average AMT for the United States was $5,895, and AMT was reported on about 2.9 percent (4.1 million) of all returns. The average AMT for the top 10 States ranged from $6,079 to $7,940. The top three States with the highest average AMT were Other Areas, at $7,940, Wyoming, at $7,587, and California, at $7,446. California represented the largest percentage, 22.9 percent, of the nation's total AMT, while Other Areas and Wyoming only represented 0.5 and 0.1 percent of total AMT, respectively. The top 10 States with the highest average AMT paid approximately 44.4 percent of the total, with just the top two States, California and New York, paying 37.7 percent. Of these top 10 States, the two States with the highest percentage of returns reporting AMT were New York and the District of Columbia. In New York, 5.5 percent of all filers reported the AMT, while the percentage for the District of Columbia was 5.4 percent.

The top 10 States with the highest average income tax are displayed in Figure G. The average income tax for Tax Year 2007 was $11,653, reported on just over 96.1 million returns. The top three States with the highest average income tax were also those with the highest AGI: Connecticut, at $21,113, Other Areas, at $17,812, and the District of Columbia, at $17,251. Illinois and Texas, despite not being in the top 10 for any of the items discussed above, ranked 9th and 10th, respectively, with an average income tax of $13,077 for Illinois and $12,630 for Texas. California reported the largest percentage of the nation's total income tax, at 13.4 percent, followed by New York, at 9.7 percent, and Texas, at 7.4 percent. Income tax reported by these three States represented nearly 30.5 percent of total U.S. income tax.

Data Sources and Limitations

The statistics in this data release are based on a sample of individual income tax returns (Forms 1040, 1040A, and 1040EZ, including electronically filed returns) filed during Calendar Year 2008. Returns in the sample were stratified based on: (1) the larger of positive income or negative income; (2) the size of business and farm receipts; (3) the presence or absence of specific forms or schedules; (4) the usefulness of returns for Treasury Department tax modeling purposes; and (5) State group.3 Returns were then selected at rates ranging from 0.1 percent to 100 percent. In an effort to minimize sampling error, the sample was post-stratified by State at the estimation stage.

The State-level Tax Year 2007 data are based on a sample of 3,956,458 returns and an estimated final population of 153,832,380 returns. This is a supersample consisting of the sample drawn to support estimation of national totals, along with a large additional sample giving sufficient returns to support State-level estimates. As explained elsewhere in this article, the Economic Stimulus Act of 2008 contained a special provision that led certain low-income individuals to file in order to receive the stimulus payment. In order to present statistics that are more consistent with previous and later years filing requirements, SOI has made an effort to identify such returns and has excluded them from data analysis for this article.

Return records in the national-level portion of the sample were thoroughly reviewed by specially trained personnel who corrected and made appropriate reallocations of the data to improve its fitness for statistical use. That level of review would be prohibitively costly for the additional returns in this sample. Instead, returns in this sample that are not included in the sample for national-level estimation were subjected to computer "force-balancing" routines that removed inconsistencies, and a subset of the largest returns, or those with large apparent inconsistencies, were reviewed by SOI's subject-matter experts, and, if necessary, were corrected.

Since the data presented here are estimates based on a sample of returns filed, they are subject to sampling error. To properly use the statistical data provided, the magnitude of the potential sampling error must be known; coefficients of variation (CVs) are used to measure that magnitude. (4) Estimates of sampling error were prepared taking both the removal of the "stimulus" returns and post-stratification by State into account. Figure H presents estimated CVs for the numbers of returns and money amounts for selected income items. The reliability of estimates based on samples and the use of coefficients of variation for evaluating the precision of estimates based on samples are discussed in SOI Sampling Methodology and Data Limitations located later in this issue of the SOI Bulletin.

Summary

Since the previously published Historical Table 2 for Tax Year 2007 included individual income tax returns filed solely to receive stimulus payments, direct comparison with previous-year data, which did not include such filers, was not possible. The revised Historical Table 2, as presented in this article, provides a more consistent depiction of the data and allows for a complete time series. Selected sources of income, AGI, total itemized deductions, the alternative minimum tax, and income tax were reviewed at the State level, and States that led the nation in each of these selected categories are highlighted. For Tax Year 2007, individual taxpayers from Connecticut reported the highest average AGI, the only State with average AGI greater than $90,000 and the highest average income tax. Taxpayers from Wyoming reported the highest average capital gains, $85,967, and reported the second highest average AMT. Individual filers from California, the State for which most individual income tax returns were filed, reported the highest average itemized deductions, at $36,440, and reported the largest percentages of the nation's totals for all income and tax items discussed in this article.

(1) Historical Table 2 , Individual Income and Tax Data, by State and Size of Adjusted Gross Income, Tax Year 2007: Statistics of Income Bulletin, Spring 2009, Volume 28, Number 4, p. 132-185.

(2) For further details on the definitions for data variables used in this text, see Statistics of Income--2007, Individual Income Tax Returns (IRS Publication 1304).

(3) Returns in the sample were stratified based on the presence or absence of one or more of the following conditions, forms, or schedules: income of $200,000 or more with no tax liability; Schedule C Business Receipts of $50,000,000 or more; Form 2555, Foreign Earned Income; Form 1116, Foreign Tax Credit (Individual); Schedule C, Profit or Loss from Business (Sole Proprietorship); Schedule F, Profit or Loss from Farming. States are divided into three size groups, where size is determined by the number of individual income tax returns filed.

(4) The coefficient of variation (CV) is defined as the standard error of an estimate divided by the estimate. Standard errors for construction of confidence intervals may be recovered by multiplying the CV by the estimate.

Taquesha Cain is an economist with the Individual Research Section. This article was prepared under the direction of Michael Strudler, Chief.
Figure A
Salaries and Wages and Average Salaries and Wages, by Selected
State, Tax Year 2007

[All figures are estimates based on a sample-money amounts are in
thousands of dollars, average amounts are in whole dollars]

 Number of Percentage
 returns with of returns
 Total salaries and having
 number of wages of salaries
 State returns [1] returns and wages

 (1) (2) (3)

 All states 142,169,394 120,934,764 85.1
Other areas [2,3] 589,696 443,632 75.2
Connecticut 1,743,516 1,463,904 84.0
New Jersey 4,300,569 3,642,593 84.7
Massachusetts 3,208,489 2,737,566 85.3
District of Columbia 303,860 257,107 84.6
New York 9,177,173 7,635,159 83.2
Maryland 2,788,595 2,402,908 86.2
California 16,530,898 13,869,710 83.9
Virginia 3,756,005 3,282,208 87.4
New Hampshire 674,150 582,794 86.4

 Percentage
 of U.S.
 Average total
 Salaries salaries salaries
 State and wages and wages and wages

 (4) (5) (6)

 All states 5,872,400,587 48,558 100.0
Other areas [2,3] 42,433,560 95,650 0.7
Connecticut 103,003,155 70,362 1.8
New Jersey 235,498,240 64,651 4.0
Massachusetts 163,477,502 59,716 2.8
District of Columbia 15,261,128 59,357 0.3
New York 441,714,203 57,853 7.5
Maryland 138,182,308 57,506 2.4
California 755,069,646 54,440 12.9
Virginia 175,484,642 53,465 3.0
New Hampshire 30,196,618 51,814 0.5

[1] Total number of returns does not include returns filed by
individuals who had no other reason to file except to receive the
economic stimulus payment.

[2] Includes returns filed from Army Post Office and Fleet Post
Office addresses by members of the armed forces stationed
overseas; returns filed by other U.S. citizens abroad; and
returns filed by residents of Puerto Rico with income from
sources outside Puerto Rico or with income earned as U.S.
government employees.

[3] These data are based on the address listed on the Form 1040.
This differs from the data in Historical Table 2 published in the
spring 2009 issue of the Statistics of Income Bulletin, in which
the State is based on the universal location code, a code used
for IRS administrative processing.

NOTE: The 10 States shown in this figure have the largest average
salaries and wages (Column 5).

Figure B
Business or Profession Net Income and Average Business or
Profession Net Income, by Selected State, Tax Year 2007

[All figures are estimates based on a sample-money amounts are in
thousands of dollars, average amounts are in whole dollars]

 Number of Percentage
 returns of returns
 with having
 Total business or business or
 number of profession profession
State returns [1] net income net income

 (1) (2) (3)

 All states 142,169,394 22,856,073 16.1
Other areas [2,3] 589,696 42,078 7.1
Connecticut 1,743,516 266,052 15.3
District of Columbia 303,860 45,467 15.0
New Jersey 4,300,569 599,735 13.9
Massachusetts 3,208,489 494,378 15.4
New Hampshire 674,150 109,644 16.3
California 16,530,898 3,027,536 18.3
Washington 3,170,643 449,452 14.2
New York 9,177,173 1,538,764 16.8
Alaska 363,641 59,224 16.3

 Percentage
 of U.S.
 Average total
 Business or business or business or
 profession profession profession
State net income net income net income

 (4) (5) (6)

 All states 281,724,509 12,326 100.0
Other areas [2,3] 1,118,880 26,591 0.4
Connecticut 5,993,254 22,527 2.1
District of Columbia 884,006 19,443 0.3
New Jersey 11,027,051 18,387 3.9
Massachusetts 9,013,498 18,232 3.2
New Hampshire 1,958,336 17,861 0.7
California 47,507,517 15,692 16.9
Washington 6,853,535 15,249 2.4
New York 22,950,760 14,915 8.1
Alaska 874,995 14,774 0.3

[1] Total number of returns does not include returns filed by
individuals who had no other reason to file except to receive the
economic stimulus payment.

[2] Includes returns filed from Army Post Office and Fleet Post
Office addresses by members of the armed forces stationed
overseas; returns filed by other U.S. citizens abroad; and
returns filed by residents of Puerto Rico with income from
sources outside Puerto Rico or with income earned as U.S.
government employees.

[3] These data are based on the address listed on the Form 1040.
This differs from the data in Historical Table 2 published in the
spring 2009 issue of the Statistics of Income Bulletin, in which
the State is based on the universal location code, a code used
for IRS administrative processing.

NOTE: The 10 States shown in this figure have the largest average
salaries and wages (Column 5).

Figure C Capital Gain (Less Loss) and Average Capital Gain (Less
Loss), by Selected State, Tax Year 2007

[All figures are estimates based on a sample-money amounts are in
thousands of dollars, average amounts are in whole dollars]

 Number
 of returns Percentage
 with of returns
 Total net capital having net
 number of gain capital gain
State returns [1] (less loss) (less loss)

 (1) (2) (3)

 All states 142,169,394 26,639,942 18.7
Wyoming 268,496 54,897 20.4
Nevada 1,280,294 183,371 14.3
District of Columbia 303,860 61,535 20.3
New York 9,177,173 1,900,690 20.7
Other areas [2,3] 589,696 143,756 24.4
Connecticut 1,743,516 450,637 25.8
Florida 8,936,343 1,598,982 17.9
Washington 3,170,643 690,022 21.8
California 16,530,898 3,129,593 18.9
Massachusetts 3,208,489 755,415 23.5

 Percentage
 of U.S.
 Average total
 Net capital capital capital
 gain gain gain
State (less loss) (less loss) (less loss)

 (4) (5) (6)

 All states 895,749,568 33,624 100.0
Wyoming 4,719,306 85,967 0.5
Nevada 13,578,178 74,048 1.5
District of Columbia 3,898,115 63,348 0.4
New York 114,080,836 60,021 12.7
Other areas [2,3] 7,764,560 54,012 0.9
Connecticut 24,170,426 53,636 2.7
Florida 82,156,576 51,381 9.2
Washington 30,679,416 44,462 3.4
California 132,136,417 42,222 14.8
Massachusetts 31,229,510 41,341 3.5

[1] Total number of returns does not include returns filed by
individuals who had no other reason to file except to receive the
economic stimulus payment.

[2] Includes returns filed from Army Post Office and Fleet Post
Office addresses by members of the armed forces stationed
overseas; returns filed by other U.S. citizens abroad; and
returns filed by residents of Puerto Rico with income from
sources outside Puerto Rico or with income earned as U.S.
government employees.

[3] These data are based on the address listed on the Form 1040.
This differs from the data in Historical Table 2 published in the
spring 2009 issue of the Statistics of Income Bulletin, in which
the State is based on the universal location code, a code used
for IRS administrative processing.

NOTE: The 10 States shown in this figure have the largest average
salaries and wages (Column 5).

Figure D
Adjusted Gross Income and Average Adjusted Gross Income, by
Selected State, Tax Year 2007

[All figures are estimates based on a sample-money amounts are in
thousands of dollars, average amounts are in whole dollars]

 Adjusted
 Number of Percentage gross
State returns [1] of returns income

 (1) (2) (3)

 All states 142,169,394 100.0 8,685,052,796
Connecticut 1,743,516 1.2 167,238,015
Other areas [2,3] 589,695 0.4 51,790,832
District of Columbia 303,860 0.2 24,822,445
New York 9,177,173 6.5 713,879,723
Massachusetts 3,208,489 2.3 249,055,678
New Jersey 4,300,569 3.0 333,318,778
Wyoming 268,496 0.2 20,495,860
Maryland 2,788,595 2.0 195,978,693
California 16,530,898 11.6 1,132,597,606
Washington 3,170,643 2.2 216,702,912

 Percentage
 of U.S.
 Average total
 adjusted adjusted
State gross income gross income

 (4) (5)

 All states 61,089 100.0
Connecticut 95,920 1.9
Other areas [2,3] 87,826 0.6
District of Columbia 81,690 0.3
New York 77,789 8.2
Massachusetts 77,624 2.9
New Jersey 77,506 3.8
Wyoming 76,336 0.2
Maryland 70,279 2.3
California 68,514 13.0
Washington 68,347 2.5

[1] Total number of returns does not include returns filed by
individuals who had no other reason to file except to receive the
economic stimulus payment.

[2] Includes returns filed from Army Post Office and Fleet Post
Office addresses by members of the armed forces stationed
overseas; returns filed by other U.S. citizens abroad; and
returns filed by residents of Puerto Rico with income from
sources outside Puerto Rico or with income earned as U.S.
government employees.

[3] These data are based on the address listed on the Form 1040.
This differs from the data in Historical Table 2 published in the
spring 2009 issue of the Statistics of Income Bulletin, in which
the State is based on the universal location code, a code used
for IRS administrative processing.

NOTE: The 10 States shown in this figure have the largest average
adjusted gross income (Column 4).

Figure E
Itemized Deductions and Average Itemized Deductions, by Selected
State, Tax Year 2007

[All figures are estimates based on a sample-money amounts are in
thousands of dollars, average amounts are in whole dollars]

 Percentage
 Number of of returns
 Total returns with having
 number of itemized itemized
State returns [1] deductions deductions

 (1) (2) (3)

 All states 142,169,394 50,085,995 35.2
California 16,530,898 6,323,771 38.3
District of Columbia 303,860 125,945 41.4
New York 9,177,173 3,487,979 38.0
Other areas [2,3] 589,696 76,049 12.9
Connecticut 1,743,516 781,088 44.8
New Jersey 4,300,569 1,929,824 44.9
Nevada 1,280,294 478,660 37.4
New Hampshire 674,150 246,714 36.6
Maryland 2,788,595 1,386,890 49.7
Massachusetts 3,208,489 1,320,898 41.2

 Percentage
 of U.S.
 Average total
 Itemized itemized itemized
State deductions deductions deductions

 (4) (5) (6)

 All states 1,325,484,755 26,464 100.0
California 230,440,950 36,440 17.4
District of Columbia 4,276,846 33,958 0.3
New York 116,621,852 33,435 8.8
Other areas [2,3] 2,440,994 32,098 0.2
Connecticut 24,522,011 31,395 1.9
New Jersey 58,473,057 30,300 4.4
Nevada 14,265,520 29,803 1.1
New Hampshire 7,223,523 29,279 0.5
Maryland 39,936,413 28,796 3.0
Massachusetts 37,405,806 28,318 2.8

[1] Total number of returns does not include returns filed by
individuals who had no other reason to file except to receive the
economic stimulus payment.

[2] Includes returns filed from Army Post Office and Fleet Post
Office addresses by members of the armed forces stationed
overseas; returns filed by other U.S. citizens abroad; and
returns filed by residents of Puerto Rico with income from
sources outside Puerto Rico or with income earned as U.S.
government employees.

[3] These data are based on the address listed on the Form 1040.
This differs from the data in Historical Table 2 published in the
spring 2009 issue of the Statistics of Income Bulletin, in which
the State is based on the universal location code, a code used
for IRS administrative processing.

NOTE: The 10 States shown in this figure have the largest average
itemized deductions (Column 5).

Figure F
Alternative Minimum Tax and Average Alternative Minimum Tax, by
Selected State, Tax Year 2007

[All figures are estimates based on a sample--money amounts are in
thousands of dollars, average amounts are in whole dollars]

 Number Percentage
 of returns of returns
 paying paying
 Total number of alternative alternative
State returns [1] minimum tax minimum tax

 (1) (2) (3)

 All states 142,169,394 4,103,044 2.9
Other areas [2,3] 589,696 15,840 2.7
Wyoming 268,496 3,851 1.4
California 16,530,898 743,498 4.5
District of Columbia 303,860 16,291 5.4
New York 9,177,173 500,378 5.5
Florida 8,936,343 164,797 1.8
Nevada 1,280,294 18,020 1.4
Vermont 318,602 8,794 2.8
Maine 648,047 14,708 2.3
Montana 470,100 8,601 1.8

 Percentage
 of U.S.
 Average total
 Alternative alternative alternative
State minimum tax minimum tax minimum tax

 (4) (5) (6)

 All states 24,187,662 5,895 100.0
Other areas [2,3] 125,773 7,940 0.5
Wyoming 29,216 7,587 0.1
California 5,535,892 7,446 22.9
District of Columbia 118,933 7,301 0.5
New York 3,576,407 7,147 14.8
Florida 1,050,866 6,377 4.3
Nevada 114,203 6,338 0.5
Vermont 54,929 6,246 0.2
Maine 90,450 6,150 0.4
Montana 52,284 6,079 0.2

[1] Total number of returns does not include returns filed by
individuals who had no other reason to file except to receive the
economic stimulus payment.

[2] Includes returns filed from Army Post Office and Fleet Post
Office addresses by members of the armed forces stationed
overseas; returns filed by other U.S. citizens abroad; and
returns filed by residents of Puerto Rico with income from
sources outside Puerto Rico or with income earned as U.S.
government employees.

[3] These data are based on the address listed on the Form 1040.
This differs from the data in Historical Table 2 published in the
spring 2009 issue of the Statistics of Income Bulletin, in which
the State is based on the universal location code, a code used
for IRS administrative processing.

NOTE: The 10 States shown in this figure have the largest average
alternative minimum tax (Column 5).

Figure G
Income Tax and Average Income Tax, by Selected State, Tax Year
2007

[All figures are estimates based on a sample-money amounts are in
thousands of dollars, average amounts are in whole dollars]

 Number of Percentage of
 Total number returns paying returns paying
State of returns [1] income tax income tax

 (1) (2) (3)

 All states 142,169,394 96,113,427 67.6
Connecticut 1,743,516 1,320,320 75.7
Other areas [3,4] 589,696 309,975 52.6
District of Columbia 303,860 220,442 72.5
New York 9,177,173 6,304,998 68.7
New Jersey 4,300,569 3,128,989 72.8
Wyoming 268,496 193,888 72.2
Massachusetts 3,208,489 2,456,363 76.6
California 16,530,898 10,885,925 65.9
Illinois 6,110,590 4,194,048 68.6
Texas 10,575,752 6,591,281 62.3

 Percentage of
 Average income U.S. total
State Income tax [2] tax income tax

 (4) (5) (6)

 All states 1,120,013,195 11,653 100.0
Connecticut 27,875,398 21,113 2.5
Other areas [3,4] 5,521,253 17,812 0.5
District of Columbia 3,802,746 17,251 0.3
New York 108,163,628 17,155 9.7
New Jersey 48,984,999 15,655 4.4
Wyoming 2,912,040 15,019 0.3
Massachusetts 36,552,290 14,881 3.3
California 149,767,275 13,758 13.4
Illinois 54,846,371 13,077 4.9
Texas 83,246,863 12,630 7.4

[1] Total number of returns does not include the returns filed by
individuals to only receive the economic stimulus payment and who
have no other reason to file.

[2] Income tax was the sum of income tax after credits (including
the subtraction of earned income credit) plus the tax from Form
4970. For a more detailed explanation, see Statistics of
Income-2007, Individual Income Tax Returns (IRS Publication
1304).

[3] Includes returns filed from Army Post Office and Fleet Post
Office addresses by members of the armed forces stationed
overseas; returns filed by other U.S. citizens abroad; and
returns filed by residents of Puerto ico with income from sources
outside Puerto Rico or with income earned as U.S. government
employees.

[4] These data are based on the address listed on the Form 1040.
This differs from the data in Historical Table 2 published in the
spring 2009 issue of the Statistics of Income Bulletin, in which
the State is based on the universal location code, a code used
for IRS administrative processing.

NOTE: The 10 States shown in this figure have the largest average
income tax (Column 5).

Figure H
Individual Income Tax Returns: Coefficients of Variation for
Selected Items, by State, Tax Year 2007

[Coefficients of variation are in percentages]

 Coefficients of variation

 Combined net Adjusted
State Salaries Business or capital gross
 and wages profession gain (less income
 net income loss) in AGI (AGI)

 (1) (2) (3) (4)

All states 0.05 0.22 0.05 0.03
ALASKA 0.97 3.93 1.85 0.56
ALABAMA 0.53 2.38 0.59 0.33
ARKANSAS 0.74 2.70 0.85 0.45
ARIZONA 0.42 1.90 0.39 0.25
CALIFORNIA 0.14 0.49 0.11 0.08
COLORADO 0.41 1.77 0.36 0.23
CONNECTICUT 0.36 1.27 0.23 0.18
DISTRICT OF COLUMBIA 0.95 4.02 0.53 0.48
DELAWARE 1.09 4.79 1.13 0.64
FLORIDA 0.25 1.26 0.14 0.13
GEORGIA 0.31 1.81 0.36 0.20
HAWAII 0.93 2.74 0.94 0.54
IOWA 0.64 2.60 0.87 0.40
IDAHO 0.91 3.68 0.91 0.55
ILLINOIS 0.25 1.20 0.20 0.14
INDIANA 0.43 1.75 0.48 0.27
KANSAS 0.62 2.19 0.70 0.38
KENTUCKY 0.58 2.18 0.73 0.40
LOUISIANA 0.53 2.14 0.75 0.35
MASSACHUSETTS 0.31 1.11 0.23 0.18
MARYLAND 0.33 1.63 0.37 0.19
MAINE 0.98 3.21 1.38 0.60
MICHIGAN 0.34 1.45 0.45 0.20
MINNESOTA 0.40 1.87 0.48 0.24
MISSOURI 0.45 1.86 0.53 0.28
MISSISSIPPI 0.75 2.76 1.10 0.49
MONTANA 1.19 4.16 1.23 0.65
NORTH CAROLINA 0.35 1.47 0.42 0.21
NORTH DAKOTA 1.24 4.51 1.85 0.73
NEBRASKA 0.78 3.30 0.86 0.48
NEW HAMPSHIRE 0.76 2.55 0.73 0.45
NEW JERSEY 0.24 0.93 0.26 0.14
NEW MEXICO 0.91 3.36 0.98 0.54
NEVADA 0.58 2.90 0.30 0.31
NEW YORK 0.19 0.62 0.09 0.10
OHIO 0.32 1.44 0.43 0.20
OKLAHOMA 0.62 2.22 0.44 0.36
OREGON 0.57 2.05 0.53 0.31
PENNSYLVANIA 0.28 0.97 0.29 0.17
RHODE ISLAND 0.91 3.32 1.02 0.55
SOUTH CAROLINA 0.56 2.19 0.59 0.34
SOUTH DAKOTA 1.31 3.98 1.36 0.76
TENNESSEE 0.44 1.35 0.43 0.27
TEXAS 0.20 0.78 0.17 0.12
UTAH 0.63 3.26 0.64 0.39
VIRGINIA 0.31 1.41 0.32 0.19
VERMONT 1.36 4.44 1.28 0.78
WASHINGTON 0.37 1.42 0.25 0.20
WISCONSIN 0.42 1.84 0.55 0.26
WEST VIRGINIA 0.96 3.03 1.52 0.62
WYOMING 1.31 5.32 0.48 0.60
OTHER AREAS 0.53 2.92 0.51 0.40

 Coefficients of variation

State
 Total itemized Alternative
 deductions minimum tax Total income

 (5) (6) (7)

All states 0.08 0.11 0.04
ALASKA 2.13 4.83 0.75
ALABAMA 0.80 2.25 0.38
ARKANSAS 1.02 1.53 0.51
ARIZONA 0.55 1.22 0.30
CALIFORNIA 0.20 0.22 0.09
COLORADO 0.53 0.88 0.27
CONNECTICUT 0.47 0.62 0.17
DISTRICT OF COLUMBIA 1.32 1.24 0.53
DELAWARE 1.42 1.88 0.76
FLORIDA 0.36 0.60 0.13
GEORGIA 0.43 0.74 0.23
HAWAII 1.35 1.77 0.66
IOWA 0.88 1.98 0.47
IDAHO 1.17 2.24 0.65
ILLINOIS 0.37 0.76 0.16
INDIANA 0.63 1.05 0.32
KANSAS 0.86 1.43 0.43
KENTUCKY 0.77 1.87 0.43
LOUISIANA 1.10 1.73 0.40
MASSACHUSETTS 0.41 0.56 0.18
MARYLAND 0.45 0.54 0.23
MAINE 1.50 1.96 0.72
MICHIGAN 0.45 0.74 0.24
MINNESOTA 0.49 0.68 0.27
MISSOURI 0.63 0.86 0.31
MISSISSIPPI 1.36 2.35 0.59
MONTANA 1.42 1.88 0.77
NORTH CAROLINA 0.45 0.59 0.24
NORTH DAKOTA 2.61 3.66 0.89
NEBRASKA 0.92 1.48 0.56
NEW HAMPSHIRE 0.94 2.40 0.53
NEW JERSEY 0.42 0.36 0.15
NEW MEXICO 1.30 2.38 0.60
NEVADA 0.83 1.40 0.35
NEW YORK 0.23 0.22 0.10
OHIO 0.43 0.55 0.24
OKLAHOMA 0.80 1.89 0.39
OREGON 0.64 1.21 0.37
PENNSYLVANIA 0.42 0.65 0.19
RHODE ISLAND 1.30 4.17 0.65
SOUTH CAROLINA 0.75 1.19 0.39
SOUTH DAKOTA 2.12 3.31 0.84
TENNESSEE 1.00 1.60 0.30
TEXAS 0.37 0.65 0.13
UTAH 0.76 1.39 0.47
VIRGINIA 0.44 0.62 0.21
VERMONT 1.75 1.90 0.91
WASHINGTON 0.54 1.22 0.23
WISCONSIN 0.55 0.95 0.31
WEST VIRGINIA 1.89 2.66 0.75
WYOMING 2.22 3.05 0.61
OTHER AREAS 1.49 2.52 0.46
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Author:Cain, Taquesha
Publication:Statistics of Income. SOI Bulletin
Geographic Code:1U9CA
Date:Mar 22, 2011
Words:6408
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