About My Tax Freedom Day
Have you ever wondered how long it takes to pay your tax obligation?
Each year, Tax Freedom Day is
the first day in which you theoretically earn enough money to fund your annual
tax burden to the government.
It's the day you "stop working for the government and start working for yourself!"
The national Tax Freedom Day is calculated annually in the United States by the
Tax Foundation,
a Washington, D.C.-based tax research organization. Every dollar that is officially considered
income by the U.S. government is counted, and every payment to the U.S. government that is
officially considered a tax is counted. Taxes at the local, state, and federal levels of government
are included. Our nation's 2009 Tax Freedom Day is April 13, for a total average effective tax
rate of 28.2% of the nation's income.
So why did we create this site and calculator?
While a national Tax Freedom Day calculation is helpful, we thought a personal Tax Freedom Day
calculation would be more accurate and useful to the individual taxpayer.
No two taxpayers are alike, so it makes sense to calculate what you actually pay compared to
the national average. For example, the following taxes are factored into the national
Tax Freedom Day but may not factor into your personal Tax Freedom Day:
- Estate Taxes
- Gift Taxes
- Cigarette Taxes
- The Death Tax
Additionally, these factors can also affect your personal Tax Freedom Day calculation:
- Federal tax bracket
- Property taxes
- State taxes (if any)
- Local taxes (county, city, township)
- Tax credits for children or hybrid cars