Tax Day’s already come and gone, but for many Americans, April 21 marks a lesser-known — and likely more appreciated — “Tax Freedom Day.”

Image: TaxFoundation.org

Image source: TaxFoundation.org

According to calculations from the D.C.-based Tax Foundation, April 21 is the day on the calendar when a typical worker will have earned enough to meet their anticipated annual income tax obligations to federal, state and local governments.

According to the Tax Foundation, federal income taxes eat up 33 days, taking the typical taxpayer from January into early February to earn enough to pay in full.

“Social insurance taxes,” like Social Security, are the next-largest cost paid by American workers, requiring 27 days to pay up.

After that, it’s sales and excise taxes (13 days), property taxes (11 days), state and local income taxes (nine days), federal corporate taxes (eight days) and 10 more days for a variety of other taxes.

All of that adds up to 111 days of earnings needed to fulfill a citizen’s obligations — three days longer than the 108 days it took in 2012.

Thanks to different state tax rates, some Americans have a Tax Freedom Date that happens earlier than April 21, while still others have to work longer to meet their local obligations.

So, which state won the race to be the first to the tax freedom finish line? That honor belongs to Louisiana, when the state achieved tax freedom on March 30, sooner than any other. On the flip side, residents of Connecticut and New Jersey are saddled with an additional 40 days, needing to work until May 9 before they can consider themselves to be free from their tax obligations.

Image: TaxFoundation.org

Image source: TaxFoundation.org

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