Tax Freedom Day is the day of the year when, a nation as a whole (citizens and companies) has earned enough income to fund its annual tax obligations.
Tax Freedom Day is an indicator that translates the tax burden into the number of days necessary to comply with our tax obligations. Tax burden is calculated diving tax revenue by GDP. The revenues considered include direct tax and indirect tax collected by central, state and local government and social security contributions. Nevertheless, government revenues form user fees are not included e.g. parking fees.
Data used for calculating Tax Freedom Day is updated periodically with the GDP estimations and budget execution. For this reason, Tax Freedom Day may come up slightly different from one year to another. Some of the data used are estimates or partial execution of the budget. For GDP, estimates and even forecasts have been used.