How Much Taxes Do You Really Pay?

Do you really know how much you pay in taxes? When clients ask me this, it’s really a loaded question. I often talk about the “effective tax rate” paid for federal and state income taxes. But, we pay taxes on many everyday items like gas, utilities, and alcohol. I came across this website from the AICPA the other day. It’s a calculator that estimates your total tax rate from all sources. Just click on your state of residence and enter the requested information. I think the results will surprise you.