By Nathan Gusdorf, Executive Director, and Emily Eisner, Ph.D., Economist

March 2024

Key Findings
  • The Personal Income Tax is the State’s most important revenue source, accounting for around 2/3 of total tax receipts; it is also a fiscally stable source of revenue due to the State’s large population of high-income earners.
  • Taxpayers earning over $1 million per year collectively earn 35 percent of all income earned in the State and pay 44 percent of all Personal Income Tax liability.
  • The Personal Income Tax is relatively flat for about 99 percent of taxpayers. A married couple earning $350,000 pays the same tax rate as a married couple earning $2 million.
  • Sound options for reforming the bracket structure and increasing the progressivity of the Personal Income Tax would raise between $2 and $20 billion in new annual revenue.