Tax return form with pen and calculator

This year, the IRS has extended the individual tax deadline to May 17th, but in a typical year, Tax Day would be Thursday, April 15th. On that date, the nation will still be working to pay this year’s taxes.

Every year the Tax Foundation calculates Tax Freedom Day®, which determines the day the country has earned enough money collectively to pay its total tax bill. The calculation considers all federal, state, and local taxes and divides them by the nation’s income. For 2021, Tax Freedom Day falls on April 17th. So, the average taxpayer will spend 106 days working to pay their taxes.

Of course, every taxpayer is different. Your individual freedom day can be calculated for this year once you’ve finished your tax forms. Find your adjusted gross income on your 2020 tax form. Total up your federal, state and local tax obligations. Then divide your taxes by your adjusted gross income; multiply that percentage by 365 which will give you the number of days you must work to pay your taxes. Count the number of days on the calendar and the next day is your personal tax freedom day.

The Tax Foundation is a nonpartisan educational organization founded in 1937 to educate taxpayers about sound tax policy and the size of the tax burden borne by Americans at all levels of government. For more information, visit

Mutual fund investing involves risk; loss of principal is possible. Investments in bonds may decline in value due to rising interest rates, a real or perceived decline in credit quality of the issuer, borrower, counterparty, or collateral, adverse tax or legislative changes, court decisions, market or economic conditions. Fund performance could be more volatile than that of funds with greater geographic diversification.

For certain investors, some dividends may be subject to federal and state taxes, including the Alternative Minimum Tax. Consult your professional tax adviser.

Before investing in a fund, carefully read about and consider the investment objectives, risks, charges, expenses, and other information found in the Fund prospectus. The prospectus is available on this site, from your financial advisor, and when you call 800-437-1020.

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