Tax Freedom Day

Tax Freedom Day is the day of the year in which a person (or population) has earned enough money to pay all his or her (or their) annual taxes. The concept was introduced by the Tax Foundation as a tool for illustrating the scope of the tax burden carried by American citizens.

In the United States, Tax Freedom Day for 2001 was May 3. This was the latest Tax Freedom Day in U.S. history. In the 20th century, Tax Freedom Day come as early as January 18 (in 1912). It has steadily moved later into the year, which means that the average net tax burden has increased.

Tax Freedom Day differs from state to state. In 2001, Alaskans had the slightest tax burden, earning enough to pay all their tax obligations by April 16. Connecticut had by far the heaviest tax burden - Tax Freedom Day there came on May 25. New Yorkers had the second heaviest tax burden, having to work until May 14 to pay their taxes.

From an international point of view the Tax Freedom Day may differ even more. In Denmark, Tax Freedom Day for 2001 was August 14.

see also income tax