Question 1

How do I look up tax data for my ZIP code?

Accepted Answer

Open the American Tax Atlas and enter your 5-digit ZIP code in the 'Your Tax Profile' tab. The tool instantly shows average income, tax paid, effective tax rate, deduction patterns, and how your ZIP compares to state and national averages. Data covers 27,588 ZIP codes from IRS Statistics of Income (2018-2022).

Question 2

What data sources does the American Tax Atlas use?

Accepted Answer

The American Tax Atlas uses four official data sources: IRS Statistics of Income ZIP code data (tax years 2018-2022, covering 27,588 ZIP codes and 165 tax metrics), Tax Foundation state tax rates and rankings (2025 edition), HUD Small Area Fair Market Rents (FY2026, covering 38,601 ZIP codes), and IRS Data Book examination tables (FY2024). All data is from government and non-profit sources.

Question 3

How can I compare taxes between two states?

Accepted Answer

Use the 'State Tax Showdown' tab to select any two states for a side-by-side comparison. It compares income tax rates and brackets, combined sales tax rates, corporate tax rates, property tax effective rates, estate tax thresholds, and Tax Foundation business climate rankings. A swap button lets you quickly reverse the comparison.

Question 4

How do I calculate tax savings from moving to another state?

Accepted Answer

The 'Relocation Calculator' tab lets you enter your current ZIP code and select a target state. It calculates the actual state income tax difference using graduated bracket-level calculations, estimates sales tax and property tax impacts, compares housing costs using HUD fair market rent data, and shows IRS migration data for that specific corridor (how many people moved and how much income they took).

Question 5

What is the IRS audit rate for my income level?

Accepted Answer

The 'Audit Risk Calculator' shows IRS examination rates by income bracket based on Data Book FY2024. Audit rates follow a U-shaped curve: higher for very low income (EITC claims at 0.7%) and very high income ($10M+ at 4.0%), with the lowest rates for middle-income filers ($50K-$200K at 0.1%). The overall individual audit rate is just 0.2%. Business entity rates are also shown: C-Corps at 0.2%, S-Corps at 0.03%, and Partnerships at 0.02%.

Question 6

Should I operate as a sole proprietor, S-Corp, or C-Corp?

Accepted Answer

The 'Entity Comparison' calculator computes federal and state taxes for all three structures based on your specific revenue, expenses, filing status, and state. It factors in self-employment tax (15.3%), FICA payroll taxes, corporate tax (21%), qualified business income deduction (20%), and qualified dividend rates. The tool highlights which entity results in the lowest total tax and shows potential annual savings.