So if you’re like me, you’ll be finishing filing your income taxes sometime tonight. I’m glad e-file has existed since I started filing income taxes. It’d probably be a disaster driving to one of those postmarking-until-midnight Post Offices if I had to mail in my income taxes.
In fact, there’s only one Post Office in all of Orange County that will still be postmarking mail until midnight tonight: 3101 Sunflower Ave. in Santa Ana (the retail portion closes at 7:00 PM, but they’re still postmarking mail received by midnight). For those in northwestern Orange County, you can drive into LA County before 10:00 PM because the Post Office at 2300 Redondo Blvd. in Long Beach will be postmarking mail until then.
While today is the day we literally pay our income taxes, the figurative day in which we finish paying our taxes is still nine days away nationally and eighteen days away for California.
The Tax Foundation annually calculates Tax Freedom Day, which is the day in which people have earned enough money to pay all their taxes (income, payroll, sales, property, etc.) for the year, assuming no change in income level during the course of the year. Any income earned after Tax Freedom Day will belong to the taxpayer (again assuming no change in income level during the course of the year).
National Tax Freedom Day for 2015 is April 24, though Tax Freedom Day varies by state.
The earliest Tax Freedom Day is in Louisiana on April 2, followed by Mississippi (April 4), South Dakota (April 8), and Tennessee and Alabama (both April 9).
The latest Tax Freedom Day is in Connecticut and New Jersey (both on May 13), New York (May 8), California (May 3), and Massachusetts (May 2).
That’s right: not only is California 47th in the nation, we’re also worse than Taxachusetts.
To look at this another way, the average Louisianan celebrates Tax Freedom Day on April 2, which is 92 days into the year, or 25.2% of the way into the year. In other words, the average Louisianan pays 25.2% of their annual income in taxes.
The average Californian celebrates Tax Freedom Day on May 3, which is 123 days into the year, or 33.7% of the way into the year. In other words, the average Californian pays 33.7% of their annual income in taxes, 8.5% more than the average Louisianan.
All of California’s neighbors celebrate Tax Freedom Day before California does: Arizona celebrates it today (17th in the country), Nevada on April 20 (26th in the country), and Oregon on April 22 (33rd in the country).