The Average Federal Income Tax Payment by Income Level

On May 16, 2022May 16, 2022By Admin

Content of the material

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Appendix
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2021 – 2022 Federal Standard Deductions
Paying Your Taxes
What is the average tax rate paid by the 1%?

Appendix

For data prior to 2001, all tax returns that have a positive AGI are included, even those that do not have a positive income tax liability. For data from 2001 forward, returns with negative AGI are also included, but dependent returns are excluded.
Income tax after credits (the measure of “income taxes paid” above) does not account for the refundable portion of tax credits such as the earned income tax credit. If the refundable portion were included, the tax share of the top income groups would be higher and the average tax rate of bottom income groups would be lower. The refundable portion is classified as a spending program by the OMB and therefore is not included by the IRS in these figures.
The only tax analyzed here is the federal individual income tax, which is responsible for more than 25 percent of the nation’s taxes paid (at all levels of government). Federal income taxes are much more progressive than federal payroll taxes, which are responsible for about 20 percent of all taxes paid (at all levels of government) and are more progressive than most state and local taxes.
AGI is a fairly narrow income concept and does not include income items like government transfers (except for the portion of Social Security benefits that is taxed), the value of employer-provided health insurance, underreported or unreported income (most notably that of sole proprietors), income derived from municipal bond interest, and net imputed rental income.
The unit of analysis here is the tax return. In the figures prior to 2001, some dependent returns are included. Under other units of analysis (like the U.S. Treasury Department’s Family Economic Unit), these returns would likely be paired with parents’ returns.
These figures represent the legal incidence of the income tax. Most distributional tables (such as those from the Congressional Budget Office, the Tax Policy Center, Citizens for Tax Justice, the Treasury Department, and the Joint Committee on Taxation) assume that the entire economic incidence of personal income taxes falls on the income earner.

Table 2. Number of Federal Individual Income Tax Returns Filed 1980–2019 (Thousands)
Year	Total	Top 0.1%	Top 1%	Top 5%	Between 5% and 10%	Top 10%	Between 10% and 25%	Top 25%	Between 25% and 50%	Top 50%	Bottom 50%
1981	94,587	946	4,729	4,729	9,459	14,188	23,647	23,647	47,293	47,293
1982	94,426	944	4,721	4,721	9,443	14,164	23,607	23,607	47,213	47,213
1983	95,331	953	4,767	4,767	9,533	14,300	23,833	23,833	47,665	47,665
1984	98,436	984	4,922	4,922	9,844	14,765	24,609	24,609	49,218	49,219
1985	100,625	1,006	5,031	5,031	10,063	15,094	25,156	25,156	50,313	50,313
1986	102,088	1,021	5,104	5,104	10,209	15,313	25,522	25,522	51,044	51,044
The Tax Reform Act of 1986 changed the definition of AGI, so data above and below this line is not strictly comparable.
1987	106,155	1,062	5,308	5,308	10,615	15,923	26,539	26,539	53,077	53,077
1988	108,873	1,089	5,444	5,444	10,887	16,331	27,218	27,218	54,436	54,436
1989	111,313	1,113	5,566	5,566	11,131	16,697	27,828	27,828	55,656	55,656
1990	112,812	1,128	5,641	5,641	11,281	16,922	28,203	28,203	56,406	56,406
1991	113,804	1,138	5,690	5,690	11,380	17,071	28,451	28,451	56,902	56,902
1992	112,653	1,127	5,633	5,633	11,265	16,898	28,163	28,163	56,326	56,326
1993	113,681	1,137	5,684	5,684	11,368	17,052	28,420	28,420	56,841	56,841
1994	114,990	1,150	5,749	5,749	11,499	17,248	28,747	28,747	57,495	57,495
1995	117,274	1,173	5,864	5,864	11,727	17,591	29,319	29,319	58,637	58,637
1996	119,442	1,194	5,972	5,972	11,944	17,916	29,860	29,860	59,721	59,721
1997	121,503	1,215	6,075	6,075	12,150	18,225	30,376	30,376	60,752	60,752
1998	123,776	1,238	6,189	6,189	12,378	18,566	30,944	30,944	61,888	61,888
1999	126,009	1,260	6,300	6,300	12,601	18,901	31,502	31,502	63,004	63,004
2000	128,227	1,282	6,411	6,411	12,823	19,234	32,057	32,057	64,114	64,114
The IRS changed methodology, so data above and below this line is not strictly comparable.
2001	119,371	119	1,194	5,969	5,969	11,937	17,906	29,843	29,843	59,685	59,685
2002	119,851	120	1,199	5,993	5,993	11,985	17,978	29,963	29,963	59,925	59,925
2003	120,759	121	1,208	6,038	6,038	12,076	18,114	30,190	30,190	60,379	60,379
2004	122,510	123	1,225	6,125	6,125	12,251	18,376	30,627	30,627	61,255	61,255
2005	124,673	125	1,247	6,234	6,234	12,467	18,701	31,168	31,168	62,337	62,337
2006	128,441	128	1,284	6,422	6,422	12,844	19,266	32,110	32,110	64,221	64,221
2007	132,655	133	1,327	6,633	6,633	13,265	19,898	33,164	33,164	66,327	66,327
2008	132,892	133	1,329	6,645	6,645	13,289	19,934	33,223	33,223	66,446	66,446
2009	132,620	133	1,326	6,631	6,631	13,262	19,893	33,155	33,155	66,310	66,310
2010	135,033	135	1,350	6,752	6,752	13,503	20,255	33,758	33,758	67,517	67,517
2011	136,586	137	1,366	6,829	6,829	13,659	20,488	34,146	34,146	68,293	68,293
2012	136,080	136	1,361	6,804	6,804	13,608	20,412	34,020	34,020	68,040	68,040
2013	138,313	138	1,383	6,916	6,916	13,831	20,747	34,578	34,578	69,157	69,157
2014	139,562	140	1,396	6,978	6,978	13,956	20,934	34,891	34,891	69,781	69,781
2015	141,205	141	1,412	7,060	7,060	14,120	21,181	35,301	35,301	70,602	70,602
2016	140,889	141	1,409	7,044	7,044	14,089	21,133	35,222	35,222	70,444	70,444
2017	143,295	143	1,433	7,165	7,165	14,330	21,494	35,824	35,824	71,648	71,648
2018	144,318	144	1,443	7,216	7,216	14,432	21,648	36,079	36,079	72,159	72,159
2019	148,246	148	1,482	7,412	7,412	14,825	22,237	37,061	37,061	74,123	74,123
Source: IRS, Statistics of Income, Individual Income Rates and Tax Shares (2019).

Table 3. Adjusted Gross Income of Taxpayers in Various Income Brackets, 1980–2017 ($Billions)
Year	Total	Top 0.1%	Top 1%	Top 5%	Between 5% & 10%	Top 10%	Between 10% & 25%	Top 25%	Between 25% & 50%	Top 50%	Bottom 50%
1980	$1,627	$138	$342	$181	$523	$400	$922	$417	$1,339	$288
1981	$1,791	$149	$372	$201	$573	$442	$1,015	$458	$1,473	$318
1982	$1,876	$167	$398	$207	$605	$460	$1,065	$478	$1,544	$332
1983	$1,970	$183	$428	$217	$646	$481	$1,127	$498	$1,625	$344
1984	$2,173	$210	$482	$240	$723	$528	$1,251	$543	$1,794	$379
1985	$2,344	$235	$531	$260	$791	$567	$1,359	$580	$1,939	$405
1986	$2,524	$285	$608	$278	$887	$604	$1,490	$613	$2,104	$421
The Tax Reform Act of 1986 changed the definition of AGI, so data above and below this line is not strictly comparable.
1987	$2,814	$347	$722	$316	$1,038	$671	$1,709	$664	$2,374	$440
1988	$3,124	$474	$891	$342	$1,233	$718	$1,951	$707	$2,658	$466
1989	$3,299	$468	$918	$368	$1,287	$768	$2,054	$751	$2,805	$494
1990	$3,451	$483	$953	$385	$1,338	$806	$2,144	$788	$2,933	$519
1991	$3,516	$457	$943	$400	$1,343	$832	$2,175	$809	$2,984	$532
1992	$3,681	$524	$1,031	$413	$1,444	$856	$2,299	$832	$3,131	$549
1993	$3,776	$521	$1,048	$426	$1,474	$883	$2,358	$854	$3,212	$563
1994	$3,961	$547	$1,103	$449	$1,552	$929	$2,481	$890	$3,371	$590
1995	$4,245	$620	$1,223	$482	$1,705	$985	$2,690	$938	$3,628	$617
1996	$4,591	$737	$1,394	$515	$1,909	$1,043	$2,953	$992	$3,944	$646
1997	$5,023	$873	$1,597	$554	$2,151	$1,116	$3,268	$1,060	$4,328	$695
1998	$5,469	$1,010	$1,797	$597	$2,394	$1,196	$3,590	$1,132	$4,721	$748
1999	$5,909	$1,153	$2,012	$641	$2,653	$1,274	$3,927	$1,199	$5,126	$783
2000	$6,424	$1,337	$2,267	$688	$2,955	$1,358	$4,314	$1,276	$5,590	$834
The IRS changed methodology, so data above and below this line is not strictly comparable.
2001	$6,116	$492	$1,065	$1,934	$666	$2,600	$1,334	$3,933	$1,302	$5,235	$881
2002	$5,982	$421	$960	$1,812	$660	$2,472	$1,339	$3,812	$1,303	$5,115	$867
2003	$6,157	$466	$1,030	$1,908	$679	$2,587	$1,375	$3,962	$1,325	$5,287	$870
2004	$6,735	$615	$1,279	$2,243	$725	$2,968	$1,455	$4,423	$1,403	$5,826	$908
2005	$7,366	$784	$1,561	$2,623	$778	$3,401	$1,540	$4,940	$1,473	$6,413	$953
2006	$7,970	$895	$1,761	$2,918	$841	$3,760	$1,652	$5,412	$1,568	$6,980	$990
2007	$8,622	$1,030	$1,971	$3,223	$905	$4,128	$1,770	$5,898	$1,673	$7,571	$1,051
2008	$8,206	$826	$1,657	$2,868	$905	$3,773	$1,782	$5,555	$1,673	$7,228	$978
2009	$7,579	$602	$1,305	$2,439	$878	$3,317	$1,740	$5,058	$1,620	$6,678	$900
2010	$8,040	$743	$1,517	$2,716	$915	$3,631	$1,800	$5,431	$1,665	$7,096	$944
2011	$8,317	$737	$1,556	$2,819	$956	$3,775	$1,866	$5,641	$1,716	$7,357	$961
2012	$9,042	$1,017	$1,977	$3,331	$997	$4,328	$1,934	$6,262	$1,776	$8,038	$1,004
2013	$9,034	$816	$1,720	$3,109	$1,034	$4,143	$2,008	$6,152	$1,844	$7,996	$1,038
2014	$9,709	$986	$1,998	$3,491	$1,093	$4,583	$2,107	$6,690	$1,924	$8,615	$1,094
2015	$10,143	$1,033	$2,095	$3,659	$1,145	$4,803	$2,194	$6,998	$2,000	$8,998	$1,145
2016	$10,157	$966	$2,003	$3,575	$1,155	$4,729	$2,221	$6,950	$2,030	$8,980	$1,177
2017	$10,937	$1,150	$2,301	$3,995	$1,226	$5,221	$2,340	$7,561	$2,145	$9,706	$1,230
2018	$11,564	$1,197	$2,420	$4,218	$1,293	$5,511	$2,458	$7,969	$2,253	$10,222	$1,342
2019	$11,883	$1,141	$2,393	$4,270	$1,351	$5,621	$2,556	$8,177	$2,340	$10,517	$1,366
Source: IRS, Statistics of Income, Individual Income Rates and Tax Shares (2019).

Table 4. Total Income Tax after Credits, 1980–2019 ($Billions)
Year	Total	Top 0.1%	Top 1%	Top 5%	Between 5% & 10%	Top 10%	Between 10% & 25%	Top 25%	Between 25% & 50%	Top 50%	Bottom 50%
1980	$249	$47	$92	$31	$123	$59	$182	$50	$232	$18
1981	$282	$50	$99	$36	$135	$69	$204	$57	$261	$21
1982	$276	$53	$100	$34	$134	$66	$200	$56	$256	$20
1983	$272	$55	$101	$34	$135	$64	$199	$54	$252	$19
1984	$297	$63	$113	$37	$150	$68	$219	$57	$276	$22
1985	$322	$70	$125	$41	$166	$73	$238	$60	$299	$23
1986	$367	$94	$156	$44	$201	$78	$279	$64	$343	$24
The Tax Reform Act of 1986 changed the definition of AGI, so data above and below this line is not strictly comparable.
1987	$369	$92	$160	$46	$205	$79	$284	$63	$347	$22
1988	$413	$114	$188	$48	$236	$85	$321	$68	$389	$24
1989	$433	$109	$190	$51	$241	$93	$334	$73	$408	$25
1990	$447	$112	$195	$52	$248	$97	$344	$77	$421	$26
1991	$448	$111	$194	$56	$250	$96	$347	$77	$424	$25
1992	$476	$131	$218	$58	$276	$97	$374	$78	$452	$24
1993	$503	$146	$238	$60	$298	$101	$399	$80	$479	$24
1994	$535	$154	$254	$64	$318	$108	$425	$84	$509	$25
1995	$588	$178	$288	$70	$357	$115	$473	$88	$561	$27
1996	$658	$213	$335	$76	$411	$124	$535	$95	$630	$28
1997	$727	$241	$377	$82	$460	$134	$594	$102	$696	$31
1998	$788	$274	$425	$88	$513	$139	$652	$103	$755	$33
1999	$877	$317	$486	$97	$583	$150	$733	$109	$842	$35
2000	$981	$367	$554	$106	$660	$164	$824	$118	$942	$38
The IRS changed methodology, so data above and below this line is not strictly comparable.
2001	$885	$139	$294	$462	$101	$564	$158	$722	$120	$842	$43
2002	$794	$120	$263	$420	$93	$513	$143	$657	$104	$761	$33
2003	$746	$115	$251	$399	$85	$484	$133	$617	$98	$715	$30
2004	$829	$142	$301	$467	$91	$558	$137	$695	$102	$797	$32
2005	$932	$176	$361	$549	$98	$647	$145	$793	$106	$898	$33
2006	$1,020	$196	$402	$607	$108	$715	$157	$872	$113	$986	$35
2007	$1,112	$221	$443	$666	$117	$783	$170	$953	$122	$1,075	$37
2008	$1,029	$187	$386	$597	$115	$712	$168	$880	$117	$997	$32
2009	$863	$146	$314	$502	$101	$604	$146	$749	$93	$842	$21
2010	$949	$170	$355	$561	$110	$670	$156	$827	$100	$927	$22
2011	$1,043	$168	$366	$589	$123	$712	$181	$893	$120	$1,012	$30
2012	$1,185	$220	$451	$699	$133	$831	$193	$1,024	$128	$1,152	$33
2013	$1,232	$228	$466	$721	$139	$860	$203	$1,063	$135	$1,198	$34
2014	$1,374	$273	$543	$824	$150	$974	$219	$1,193	$144	$1,337	$38
2015	$1,454	$284	$568	$866	$160	$1,027	$233	$1,260	$154	$1,413	$41
2016	$1,442	$261	$538	$840	$162	$1,002	$238	$1,240	$159	$1,399	$44
2017	$1,601	$310	$616	$947	$175	$1,122	$257	$1,379	$173	$1,552	$50
2018	$1,536	$311	$616	$926	$170	$1,096	$240	$1,336	$155	$1,491	$45
2019	$1,579	$298	$612	$938	$179	$1,118	$250	$1,368	$162	$1,530	$48
Source: IRS, Statistics of Income, Individual Income Rates and Tax Shares

Table 5. Adjusted Gross Income Shares, 1980–2019 (percent of total AGI earned by each group)
Year	Total	Top 0.1%	Top 1%	Top 5%	Between 5% & 10%	Top 10%	Between 10% & 25%	Top 25%	Between 25% & 50%	Top 50%	Bottom 50%
1980	100%	8.46%	21.01%	11.12%	32.13%	24.57%	56.70%	25.62%	82.32%	17.68%
1981	100%	8.30%	20.78%	11.20%	31.98%	24.69%	56.67%	25.59%	82.25%	17.75%
1982	100%	8.91%	21.23%	11.03%	32.26%	24.53%	56.79%	25.50%	82.29%	17.71%
1983	100%	9.29%	21.74%	11.04%	32.78%	24.44%	57.22%	25.30%	82.52%	17.48%
1984	100%	9.66%	22.19%	11.06%	33.25%	24.31%	57.56%	25.00%	82.56%	17.44%
1985	100%	10.03%	22.67%	11.10%	33.77%	24.21%	57.97%	24.77%	82.74%	17.26%
1986	100%	11.30%	24.11%	11.02%	35.12%	23.92%	59.04%	24.30%	83.34%	16.66%
The Tax Reform Act of 1986 changed the definition of AGI, so data above and below this line is not strictly comparable.
1987	100%	12.32%	25.67%	11.23%	36.90%	23.85%	60.75%	23.62%	84.37%	15.63%
1988	100%	15.16%	28.51%	10.94%	39.45%	22.99%	62.44%	22.63%	85.07%	14.93%
1989	100%	14.19%	27.84%	11.16%	39.00%	23.28%	62.28%	22.76%	85.04%	14.96%
1990	100%	14.00%	27.62%	11.15%	38.77%	23.36%	62.13%	22.84%	84.97%	15.03%
1991	100%	12.99%	26.83%	11.37%	38.20%	23.65%	61.85%	23.01%	84.87%	15.13%
1992	100%	14.23%	28.01%	11.21%	39.23%	23.25%	62.47%	22.61%	85.08%	14.92%
1993	100%	13.79%	27.76%	11.29%	39.05%	23.40%	62.45%	22.63%	85.08%	14.92%
1994	100%	13.80%	27.85%	11.34%	39.19%	23.45%	62.64%	22.48%	85.11%	14.89%
1995	100%	14.60%	28.81%	11.35%	40.16%	23.21%	63.37%	22.09%	85.46%	14.54%
1996	100%	16.04%	30.36%	11.23%	41.59%	22.73%	64.32%	21.60%	85.92%	14.08%
1997	100%	17.38%	31.79%	11.03%	42.83%	22.22%	65.05%	21.11%	86.16%	13.84%
1998	100%	18.47%	32.85%	10.92%	43.77%	21.87%	65.63%	20.69%	86.33%	13.67%
1999	100%	19.51%	34.04%	10.85%	44.89%	21.57%	66.46%	20.29%	86.75%	13.25%
2000	100%	20.81%	35.30%	10.71%	46.01%	21.15%	67.15%	19.86%	87.01%	12.99%
The IRS changed methodology, so data above and below this line is not strictly comparable.
2001	100%	8.05%	17.41%	31.61%	10.89%	42.50%	21.80%	64.31%	21.29%	85.60%	14.40%
2002	100%	7.04%	16.05%	30.29%	11.04%	41.33%	22.39%	63.71%	21.79%	85.50%	14.50%
2003	100%	7.56%	16.73%	30.99%	11.03%	42.01%	22.33%	64.34%	21.52%	85.87%	14.13%
2004	100%	9.14%	18.99%	33.31%	10.77%	44.07%	21.60%	65.68%	20.83%	86.51%	13.49%
2005	100%	10.64%	21.19%	35.61%	10.56%	46.17%	20.90%	67.07%	19.99%	87.06%	12.94%
2006	100%	11.23%	22.10%	36.62%	10.56%	47.17%	20.73%	67.91%	19.68%	87.58%	12.42%
2007	100%	11.95%	22.86%	37.39%	10.49%	47.88%	20.53%	68.41%	19.40%	87.81%	12.19%
2008	100%	10.06%	20.19%	34.95%	11.03%	45.98%	21.71%	67.69%	20.39%	88.08%	11.92%
2009	100%	7.94%	17.21%	32.18%	11.59%	43.77%	22.96%	66.74%	21.38%	88.12%	11.88%
2010	100%	9.24%	18.87%	33.78%	11.38%	45.17%	22.38%	67.55%	20.71%	88.26%	11.74%
2011	100%	8.86%	18.70%	33.89%	11.50%	45.39%	22.43%	67.82%	20.63%	88.45%	11.55%
2012	100%	11.25%	21.86%	36.84%	11.03%	47.87%	21.39%	69.25%	19.64%	88.90%	11.10%
2013	100%	9.03%	19.04%	34.42%	11.45%	45.87%	22.23%	68.10%	20.41%	88.51%	11.49%
2014	100%	10.16%	20.58%	35.96%	11.25%	47.21%	21.70%	68.91%	19.82%	88.73%	11.27%
2015	100%	10.19%	20.65%	36.07%	11.29%	47.36%	21.64%	68.99%	19.72%	88.72%	11.28%
2016	100%	9.52%	19.72%	35.20%	11.37%	46.56%	21.86%	68.43%	19.98%	88.41%	11.59%
2017	100%	10.52%	21.04%	36.53%	11.21%	47.74%	21.40%	69.14%	19.61%	88.75%	11.25%
2018	100%	10.35%	20.93%	36.48%	11.18%	47.66%	21.26%	68.91%	19.48%	88.39%	11.61%
2019	100%	9.60%	20.14%	35.93%	11.37%	47.30%	21.51%	68.82%	19.69%	88.51%	11.49%
Source: IRS, Statistics of Income, Individual Income Rates and Tax Shares

Table 6. Total Income Tax Shares, 1980–2019 (percent of federal income tax paid by each group)9
Year	Total	Top 0.1%	Top 1%	Top 5%	Between 5% & 10%	Top 10%	Between 10% & 25%	Top 25%	Between 25% & 50%	Top 50%	Bottom 50%
1980	100%	19.05%	36.84%	12.44%	49.28%	23.74%	73.02%	19.93%	92.95%	7.05%
1981	100%	17.58%	35.06%	12.90%	47.96%	24.33%	72.29%	20.26%	92.55%	7.45%
1982	100%	19.03%	36.13%	12.45%	48.59%	23.91%	72.50%	20.15%	92.65%	7.35%
1983	100%	20.32%	37.26%	12.44%	49.71%	23.39%	73.10%	19.73%	92.83%	7.17%
1984	100%	21.12%	37.98%	12.58%	50.56%	22.92%	73.49%	19.16%	92.65%	7.35%
1985	100%	21.81%	38.78%	12.67%	51.46%	22.60%	74.06%	18.77%	92.83%	7.17%
1986	100%	25.75%	42.57%	12.12%	54.69%	21.33%	76.02%	17.52%	93.54%	6.46%
The Tax Reform Act of 1986 changed the definition of AGI, so data above and below this line is not strictly comparable.
1987	100%	24.81%	43.26%	12.35%	55.61%	21.31%	76.92%	17.02%	93.93%	6.07%
1988	100%	27.58%	45.62%	11.66%	57.28%	20.57%	77.84%	16.44%	94.28%	5.72%
1989	100%	25.24%	43.94%	11.85%	55.78%	21.44%	77.22%	16.94%	94.17%	5.83%
1990	100%	25.13%	43.64%	11.73%	55.36%	21.66%	77.02%	17.16%	94.19%	5.81%
1991	100%	24.82%	43.38%	12.45%	55.82%	21.46%	77.29%	17.23%	94.52%	5.48%
1992	100%	27.54%	45.88%	12.12%	58.01%	20.47%	78.48%	16.46%	94.94%	5.06%
1993	100%	29.01%	47.36%	11.88%	59.24%	20.03%	79.27%	15.92%	95.19%	4.81%
1994	100%	28.86%	47.52%	11.93%	59.45%	20.10%	79.55%	15.68%	95.23%	4.77%
1995	100%	30.26%	48.91%	11.84%	60.75%	19.62%	80.36%	15.03%	95.39%	4.61%
1996	100%	32.31%	50.97%	11.54%	62.51%	18.80%	81.32%	14.36%	95.68%	4.32%
1997	100%	33.17%	51.87%	11.33%	63.20%	18.47%	81.67%	14.05%	95.72%	4.28%
1998	100%	34.75%	53.84%	11.20%	65.04%	17.65%	82.69%	13.10%	95.79%	4.21%
1999	100%	36.18%	55.45%	11.00%	66.45%	17.09%	83.54%	12.46%	96.00%	4.00%
2000	100%	37.42%	56.47%	10.86%	67.33%	16.68%	84.01%	12.08%	96.09%	3.91%
The IRS changed methodology, so data above and below this line is not strictly comparable.
2001	100%	15.68%	33.22%	52.24%	11.44%	63.68%	17.88%	81.56%	13.54%	95.10%	4.90%
2002	100%	15.09%	33.09%	52.86%	11.77%	64.63%	18.04%	82.67%	13.12%	95.79%	4.21%
2003	100%	15.37%	33.69%	53.54%	11.35%	64.89%	17.87%	82.76%	13.17%	95.93%	4.07%
2004	100%	17.12%	36.28%	56.35%	10.96%	67.30%	16.52%	83.82%	12.31%	96.13%	3.87%
2005	100%	18.91%	38.78%	58.93%	10.52%	69.46%	15.61%	85.07%	11.35%	96.41%	3.59%
2006	100%	19.24%	39.36%	59.49%	10.59%	70.08%	15.41%	85.49%	11.10%	96.59%	3.41%
2007	100%	19.84%	39.81%	59.90%	10.51%	70.41%	15.30%	85.71%	10.93%	96.64%	3.36%
2008	100%	18.20%	37.51%	58.06%	11.14%	69.20%	16.37%	85.57%	11.33%	96.90%	3.10%
2009	100%	16.91%	36.34%	58.17%	11.72%	69.89%	16.85%	86.74%	10.80%	97.54%	2.46%
2010	100%	17.88%	37.38%	59.07%	11.55%	70.62%	16.49%	87.11%	10.53%	97.64%	2.36%
2011	100%	16.14%	35.06%	56.49%	11.77%	68.26%	17.36%	85.62%	11.50%	97.11%	2.89%
2012	100%	18.60%	38.09%	58.95%	11.22%	70.17%	16.25%	86.42%	10.80%	97.22%	2.78%
2013	100%	18.48%	37.80%	58.55%	11.25%	69.80%	16.47%	86.27%	10.94%	97.22%	2.78%
2014	100%	19.85%	39.48%	59.97%	10.91%	70.88%	15.90%	86.78%	10.47%	97.25%	2.75%
2015	100%	19.50%	39.04%	59.58%	11.01%	70.59%	16.03%	86.62%	10.55%	97.17%	2.83%
2016	100.00%	18.12%	37.32%	58.23%	11.24%	69.47%	16.50%	85.97%	10.99%	96.96%	3.04%
2017	100.00%	19.34%	38.47%	59.14%	10.94%	70.08%	16.02%	86.10%	10.79%	96.89%	3.11%
2018	100.00%	20.22%	40.08%	60.30%	11.06%	71.37%	15.60%	86.97%	10.09%	97.06%	2.94%
2019	100.00%	18.87%	38.77%	59.44%	11.37%	70.81%	15.84%	86.65%	10.29%	96.94%	3.06%
Source: IRS, Statistics of Income, Individual Income Rates and Tax Shares

Table 7. Dollar Cut-Off, 1980–2019 (Minimum AGI for Tax Returns to Fall into Various Percentiles; Thresholds Not Adjusted for Inflation)
Year	Top 0.1%	Top 1%	Top 5%	Top 10%	Top 25%	Top 50%
1980	$80,580	$43,792	$35,070	$23,606	$12,936
1981	$85,428	$47,845	$38,283	$25,655	$14,000
1982	$89,388	$49,284	$39,676	$27,027	$14,539
1983	$93,512	$51,553	$41,222	$27,827	$15,044
1984	$100,889	$55,423	$43,956	$29,360	$15,998
1985	$108,134	$58,883	$46,322	$30,928	$16,688
1986	$118,818	$62,377	$48,656	$32,242	$17,302
The Tax Reform Act of 1986 changed the definition of AGI, so data above and below this line is not strictly comparable.
1987	$139,289	$68,414	$52,921	$33,983	$17,768
1988	$157,136	$72,735	$55,437	$35,398	$18,367
1989	$163,869	$76,933	$58,263	$36,839	$18,993
1990	$167,421	$79,064	$60,287	$38,080	$19,767
1991	$170,139	$81,720	$61,944	$38,929	$20,097
1992	$181,904	$85,103	$64,457	$40,378	$20,803
1993	$185,715	$87,386	$66,077	$41,210	$21,179
1994	$195,726	$91,226	$68,753	$42,742	$21,802
1995	$209,406	$96,221	$72,094	$44,207	$22,344
1996	$227,546	$101,141	$74,986	$45,757	$23,174
1997	$250,736	$108,048	$79,212	$48,173	$24,393
1998	$269,496	$114,729	$83,220	$50,607	$25,491
1999	$293,415	$120,846	$87,682	$52,965	$26,415
2000	$313,469	$128,336	$92,144	$55,225	$27,682
The IRS changed methodology, so data above and below this line is not strictly comparable.
2001	$1,393,718	$306,635	$132,082	$96,151	$59,026	$31,418
2002	$1,245,352	$296,194	$130,750	$95,699	$59,066	$31,299
2003	$1,317,088	$305,939	$133,741	$97,470	$59,896	$31,447
2004	$1,617,918	$339,993	$140,758	$101,838	$62,794	$32,622
2005	$1,938,175	$379,261	$149,216	$106,864	$64,821	$33,484
2006	$2,124,625	$402,603	$157,390	$112,016	$67,291	$34,417
2007	$2,251,017	$426,439	$164,883	$116,396	$69,559	$35,541
2008	$1,867,652	$392,513	$163,512	$116,813	$69,813	$35,340
2009	$1,469,393	$351,968	$157,342	$114,181	$68,216	$34,156
2010	$1,634,386	$369,691	$161,579	$116,623	$69,126	$34,338
2011	$1,717,675	$388,905	$167,728	$120,136	$70,492	$34,823
2012	$2,161,175	$434,682	$175,817	$125,195	$73,354	$36,055
2013	$1,860,848	$428,713	$179,760	$127,695	$74,955	$36,841
2014	$2,136,762	$465,626	$188,996	$133,445	$77,714	$38,173
2015	$2,220,264	$480,930	$195,778	$138,031	$79,655	$39,275
2016	$2,124,117	$480,804	$197,651	$139,713	$80,921	$40,078
2017	$2,374,937	$515,371	$208,053	$145,135	$83,682	$41,740
2018	$2,514,209	$540,009	$217,913	$151,935	$87,044	$43,614
2019	$2,458,432	$546,434	$221,572	$154,589	$87,917	$44,269
Source: IRS, Statistics of Income, Individual Income Rates and Tax Shares

Table 8. Average Tax Rate, 1980–2019 (Percent of AGI Paid in Income Taxes)
Year	Total	Top 0.1%	Top 1%	Top 5%	Between 5% & 10%	Top 10%	Between 10% & 25%	Top 25%	Between 25% & 50%	Top 50%	Bottom 50%
1980	15.31%	34.47%	26.85%	17.13%	23.49%	14.80%	19.72%	11.91%	17.29%	6.10%
1981	15.76%	33.37%	26.59%	18.16%	23.64%	15.53%	20.11%	12.48%	17.73%	6.62%
1982	14.72%	31.43%	25.05%	16.61%	22.17%	14.35%	18.79%	11.63%	16.57%	6.10%
1983	13.79%	30.18%	23.64%	15.54%	20.91%	13.20%	17.62%	10.76%	15.52%	5.66%
1984	13.68%	29.92%	23.42%	15.57%	20.81%	12.90%	17.47%	10.48%	15.35%	5.77%
1985	13.73%	29.86%	23.50%	15.69%	20.93%	12.83%	17.55%	10.41%	15.41%	5.70%
1986	14.54%	33.13%	25.68%	15.99%	22.64%	12.97%	18.72%	10.48%	16.32%	5.63%
The Tax Reform Act of 1986 changed the definition of AGI, so data above and below this line is not strictly comparable.
1987	13.12%	26.41%	22.10%	14.43%	19.77%	11.71%	16.61%	9.45%	14.60%	5.09%
1988	13.21%	24.04%	21.14%	14.07%	19.18%	11.82%	16.47%	9.60%	14.64%	5.06%
1989	13.12%	23.34%	20.71%	13.93%	18.77%	12.08%	16.27%	9.77%	14.53%	5.11%
1990	12.95%	23.25%	20.46%	13.63%	18.50%	12.01%	16.06%	9.73%	14.36%	5.01%
1991	12.75%	24.37%	20.62%	13.96%	18.63%	11.57%	15.93%	9.55%	14.20%	4.62%
1992	12.94%	25.05%	21.19%	13.99%	19.13%	11.39%	16.25%	9.42%	14.44%	4.39%
1993	13.32%	28.01%	22.71%	14.01%	20.20%	11.40%	16.90%	9.37%	14.90%	4.29%
1994	13.50%	28.23%	23.04%	14.20%	20.48%	11.57%	17.15%	9.42%	15.11%	4.32%
1995	13.86%	28.73%	23.53%	14.46%	20.97%	11.71%	17.58%	9.43%	15.47%	4.39%
1996	14.34%	28.87%	24.07%	14.74%	21.55%	11.86%	18.12%	9.53%	15.96%	4.40%
1997	14.48%	27.64%	23.62%	14.87%	21.36%	12.04%	18.18%	9.63%	16.09%	4.48%
1998	14.42%	27.12%	23.63%	14.79%	21.42%	11.63%	18.16%	9.12%	16.00%	4.44%
1999	14.85%	27.53%	24.18%	15.06%	21.98%	11.76%	18.66%	9.12%	16.43%	4.48%
2000	15.26%	27.45%	24.42%	15.48%	22.34%	12.04%	19.09%	9.28%	16.86%	4.60%
The IRS changed methodology, so data above and below this line is not strictly comparable.
2001	14.47%	28.17%	27.60%	23.91%	15.20%	21.68%	11.87%	18.35%	9.20%	16.08%	4.92%
2002	13.28%	28.48%	27.37%	23.17%	14.15%	20.76%	10.70%	17.23%	8.00%	14.87%	3.86%
2003	12.11%	24.60%	24.38%	20.92%	12.46%	18.70%	9.69%	15.57%	7.41%	13.53%	3.49%
2004	12.31%	23.06%	23.52%	20.83%	12.53%	18.80%	9.41%	15.71%	7.27%	13.68%	3.53%
2005	12.65%	22.48%	23.15%	20.93%	12.61%	19.03%	9.45%	16.04%	7.18%	14.01%	3.51%
2006	12.80%	21.94%	22.80%	20.80%	12.84%	19.02%	9.52%	16.12%	7.22%	14.12%	3.51%
2007	12.90%	21.42%	22.46%	20.66%	12.92%	18.96%	9.61%	16.16%	7.27%	14.19%	3.56%
2008	12.54%	22.67%	23.29%	20.83%	12.66%	18.87%	9.45%	15.85%	6.97%	13.79%	3.26%
2009	11.39%	24.28%	24.05%	20.59%	11.53%	18.19%	8.36%	14.81%	5.76%	12.61%	2.35%
2010	11.81%	22.84%	23.39%	20.64%	11.98%	18.46%	8.70%	15.22%	6.01%	13.06%	2.37%
2011	12.54%	22.82%	23.50%	20.89%	12.83%	18.85%	9.70%	15.82%	6.98%	13.76%	3.13%
2012	13.11%	21.67%	22.83%	20.97%	13.33%	19.21%	9.96%	16.35%	7.21%	14.33%	3.28%
2013	13.64%	27.91%	27.08%	23.20%	13.40%	20.75%	10.11%	17.28%	7.31%	14.98%	3.30%
2014	14.16%	27.67%	27.16%	23.61%	13.73%	21.25%	10.37%	17.83%	7.48%	15.52%	3.45%
2015	14.34%	27.44%	27.10%	23.68%	13.99%	21.37%	10.62%	18.00%	7.67%	15.71%	3.59%
2016	14.20%	27.05%	26.87%	23.49%	14.05%	21.19%	10.71%	17.84%	7.81%	15.57%	3.73%
2017	14.64%	26.93%	26.76%	23.70%	14.29%	21.49%	10.96%	18.23%	8.06%	15.99%	4.05%
2018	13.28%	25.96%	25.44%	21.96%	13.14%	19.89%	9.75%	16.77%	6.88%	14.59%	3.36%
2019	13.29%	26.12%	25.57%	21.98%	13.28%	19.89%	9.78%	16.73%	6.94%	14.55%	3.54%
Source: IRS, Statistics of Income, Individual Income Rates and Tax Shares

Table 4.1. All Individual Returns Excluding Dependents: Number of Returns, Shares of Adjusted Gross Income (AGI) and Total Income Tax, AGI Floor on Percentiles in Current and Constant Dollars, and Average Tax Rates, by Selected Expanded Descending Cumulative Percentiles of Returns Based on Income Size Using the Definition of AGI for Each Year, Tax Years 2001-2019
[All figures are estimates based on samples]
	Total	Descending cumulative percentiles
Top 0.001 percent	Top 0.01 percent	Top 0.1 percent	Top 1 percent	Top 2 percent	Top 3 percent	Top 4 percent	Top 5 percent	Top 10 percent	Top 20 percent	Top 25 percent	Top 30 percent	Top 40 percent	Top 50 percent
Number of returns:
2001	119,370,886	1,194	11,937	119,371	1,193,709	2,387,418	3,581,127	4,774,835	5,968,544	11,937,089	23,874,177	29,842,722	35,811,266	47,748,354	59,685,443
2002	119,850,561	1,199	11,985	119,851	1,198,506	2,397,011	3,595,517	4,794,022	5,992,528	11,985,056	23,970,112	29,962,640	35,955,168	47,940,224	59,925,281
2003	120,758,947	1,208	12,076	120,759	1,207,589	2,415,179	3,622,768	4,830,358	6,037,947	12,075,895	24,151,789	30,189,737	36,227,684	48,303,579	60,379,474
2004	122,509,974	1,225	12,251	122,510	1,225,100	2,450,199	3,675,299	4,900,399	6,125,499	12,250,997	24,501,995	30,627,494	36,752,992	49,003,990	61,254,987
2005	124,673,055	1,247	12,467	124,673	1,246,731	2,493,461	3,740,192	4,986,922	6,233,653	12,467,306	24,934,611	31,168,264	37,401,917	49,869,222	62,336,528
2006	128,441,165	1,284	12,844	128,441	1,284,412	2,568,823	3,853,235	5,137,647	6,422,058	12,844,117	25,688,233	32,110,291	38,532,350	51,376,466	64,220,583
2007	[4] 132,654,911	[4] 1,327	[4] 13,265	132,654	1,326,549	2,653,098	3,979,647	5,306,196	6,632,746	13,265,491	26,530,982	33,163,728	39,796,473	53,061,964	66,327,456
2008	132,891,770	1,329	13,289	132,892	1,328,918	2,657,835	3,986,753	5,315,671	6,644,589	13,289,177	26,578,354	33,222,943	39,867,531	53,156,708	66,445,885
2009	132,619,936	1,326	13,262	132,620	1,326,199	2,652,399	3,978,598	5,304,797	6,630,997	13,261,994	26,523,987	33,154,984	39,785,981	53,047,974	66,309,968
2010	135,033,492	1,350	13,503	135,033	1,350,335	2,700,670	4,051,005	5,401,340	6,751,675	13,503,349	27,006,698	33,758,373	40,510,048	54,013,397	67,516,746
2011	136,585,712	1,366	13,659	136,586	1,365,857	2,731,714	4,097,571	5,463,428	6,829,286	13,658,571	27,317,142	34,146,428	40,975,714	54,634,285	68,292,856
2012	136,080,353	1,361	13,608	136,080	1,360,804	2,721,607	4,082,411	5,443,214	6,804,018	13,608,035	27,216,071	34,020,088	40,824,106	54,432,141	68,040,177
2013	138,313,155	1,383	13,831	138,313	1,383,132	2,766,263	4,149,395	5,532,526	6,915,658	13,831,316	27,662,631	34,578,289	41,493,947	55,325,262	69,156,578
2014	139,562,034	1,396	13,956	139,562	1,395,620	2,791,241	4,186,861	5,582,481	6,978,102	13,956,203	27,912,407	34,890,509	41,868,610	55,824,814	69,781,017
2015	141,204,625	1,412	14,120	141,205	1,412,046	2,824,093	4,236,139	5,648,185	7,060,231	14,120,463	28,240,925	35,301,156	42,361,388	56,481,850	70,602,313
2016	140,888,785	1,409	14,089	140,889	1,408,888	2,817,776	4,226,664	5,635,551	7,044,439	14,088,879	28,177,757	35,222,196	42,266,636	56,355,514	70,444,393
2017	143,295,160	1,433	14,330	143,295	1,432,952	2,865,903	4,298,855	5,731,806	7,164,758	14,329,516	28,659,032	35,823,790	42,988,548	57,318,064	71,647,580
2018	144,317,866	1,443	14,432	144,318	1,443,179	2,886,357	4,329,536	5,772,715	7,215,893	14,431,787	28,863,573	36,079,467	43,295,360	57,727,146	72,158,933
2019	148,245,929	1,482	14,825	148,246	1,482,459	2,964,919	4,447,378	5,929,837	7,412,296	14,824,593	29,649,186	37,061,482	44,473,779	59,298,372	74,122,965
Adjusted gross income floor on percentiles (current dollars):
2001	N/A	31,331,335	6,869,952	1,393,718	306,635	207,592	167,788	145,667	132,082	96,151	67,818	59,026	51,863	40,293	31,418
2002	N/A	25,921,482	5,891,214	1,245,352	296,194	200,654	164,409	144,575	130,750	95,699	67,928	59,066	51,721	40,073	31,299
2003	N/A	28,489,160	6,386,149	1,317,088	305,939	205,565	168,248	147,132	133,741	97,470	69,304	59,896	52,353	40,383	31,447
2004	N/A	38,780,500	8,455,107	1,617,918	339,993	224,320	181,127	156,665	140,758	101,838	72,069	62,794	54,765	42,081	32,622
2005	N/A	50,796,495	10,738,867	1,938,175	379,261	245,392	194,726	167,281	149,216	106,864	74,790	64,821	56,583	43,361	33,484
2006	N/A	54,665,360	11,649,460	2,124,625	402,603	258,800	205,835	176,455	157,390	112,016	77,776	67,291	58,505	44,748	34,417
2007	N/A	62,955,875	12,747,384	2,251,017	426,439	270,440	214,832	184,473	164,883	116,396	80,723	69,559	60,617	46,200	35,541
2008	N/A	49,546,782	10,097,827	1,867,652	392,513	260,381	209,750	181,624	163,512	116,813	80,886	69,813	60,535	46,120	35,340
2009	N/A	34,381,494	7,206,540	1,469,393	351,968	243,096	198,731	174,432	157,342	114,181	79,237	68,216	58,876	44,529	34,156
2010	N/A	45,039,369	8,762,618	1,634,386	369,691	252,785	205,942	179,023	161,579	116,623	80,462	69,126	59,512	44,895	34,338
2011	N/A	41,965,258	8,830,028	1,717,675	388,905	262,933	213,441	185,812	167,728	120,136	82,241	70,492	60,789	45,722	34,823
2012	N/A	62,068,187	12,104,014	2,161,175	434,682	285,908	227,923	196,416	175,817	125,195	85,440	73,354	63,222	47,475	36,055
2013	N/A	45,097,112	9,460,540	1,860,848	428,713	287,018	231,507	200,472	179,760	127,695	87,434	74,955	64,650	48,463	36,841
2014	N/A	56,981,718	11,407,987	2,136,762	465,626	306,650	245,902	211,261	188,996	133,445	90,606	77,714	66,868	50,083	38,173
2015	N/A	59,380,503	11,930,649	2,220,264	480,930	316,913	253,979	218,911	195,778	138,031	93,212	79,655	68,632	51,571	39,275
2016	N/A	53,052,900	10,963,921	2,124,117	480,804	319,796	256,673	221,381	197,651	139,713	94,620	80,921	69,581	52,529	40,078
2017	N/A	63,430,119	12,899,070	2,374,937	515,371	339,478	271,182	232,955	208,053	145,135	97,870	83,682	72,268	54,672	41,740
2018	N/A	68,934,261	13,576,286	2,514,209	540,009	359,368	286,106	245,050	217,913	151,935	101,765	87,044	75,083	57,092	43,614
2019	N/A	60,658,598	12,623,539	2,458,432	546,434	364,693	291,384	249,320	221,572	154,589	103,012	87,917	75,991	57,685	44,269
Adjusted gross income floor on percentiles (constant dollars): [1]
2001	N/A	23,122,756	5,070,075	1,028,574	226,299	153,204	123,829	107,503	97,477	70,960	50,050	43,562	38,275	29,737	23,187
2002	N/A	18,838,286	4,281,406	905,052	215,257	145,824	119,483	105,069	95,022	69,549	49,366	42,926	37,588	29,123	22,746
2003	N/A	20,233,778	4,535,617	935,432	217,286	145,998	119,494	104,497	94,987	69,226	49,222	42,540	37,183	28,681	22,335
2004	N/A	26,837,716	5,851,285	1,119,666	235,289	155,239	125,347	108,419	97,410	70,476	49,875	43,456	37,900	29,122	22,576
2005	N/A	34,000,331	7,187,997	1,297,306	253,856	164,252	130,339	111,969	99,877	71,529	50,060	43,388	37,873	29,023	22,412
2006	N/A	35,450,947	7,554,773	1,377,837	261,091	167,834	133,486	114,433	102,069	72,643	50,438	43,639	37,941	29,019	22,320
2007	N/A	39,694,751	8,037,443	1,419,305	268,877	170,517	135,455	116,313	103,962	73,390	50,897	43,858	38,220	29,130	22,409
2008	N/A	30,083,049	6,131,043	1,133,972	238,320	158,094	127,353	110,276	99,279	70,925	49,111	42,388	36,755	28,002	21,457
2009	N/A	20,951,550	4,391,554	895,425	214,484	148,139	121,104	106,296	95,882	69,580	48,286	41,570	35,878	27,135	20,814
2010	N/A	27,002,020	5,253,368	979,848	221,637	151,550	123,466	107,328	96,870	69,918	48,239	41,442	35,679	26,915	20,586
2011	N/A	24,384,229	5,130,754	998,068	225,976	152,779	124,021	107,967	97,460	69,806	47,787	40,960	35,322	26,567	20,234
2012	N/A	35,346,348	6,892,946	1,230,737	247,541	162,818	129,797	111,854	100,124	71,296	48,656	41,773	36,003	27,036	20,532
2013	N/A	25,301,633	5,307,815	1,044,025	240,528	161,031	129,886	112,474	100,854	71,643	49,055	42,053	36,272	27,190	20,670
2014	N/A	31,464,229	6,299,275	1,179,880	257,110	169,326	135,782	116,654	104,360	73,686	50,031	42,912	36,923	27,655	21,078
2015	N/A	32,752,622	6,580,612	1,224,635	265,268	174,800	140,088	120,745	107,986	76,134	51,413	43,935	37,855	28,445	21,663
2016	N/A	28,895,915	5,971,635	1,156,926	261,876	174,181	139,800	120,578	107,653	76,096	51,536	44,075	37,898	28,611	21,829
2017	N/A	33,829,397	6,879,504	1,266,633	274,865	181,055	144,630	124,243	110,962	77,405	52,197	44,630	38,543	29,158	22,261
2018	N/A	35,884,571	7,067,301	1,308,802	281,108	187,073	148,936	127,564	113,437	79,092	52,975	45,312	39,085	29,720	22,704
2019	N/A	31,011,553	6,453,752	1,256,867	279,363	186,448	148,969	127,464	113,278	79,033	52,665	44,947	38,850	29,491	22,632
Adjusted gross income (millions of dollars):
2001	6,116,274	84,705	216,684	492,437	1,064,928	1,360,872	1,582,562	1,768,355	1,933,563	2,599,650	3,555,692	3,933,186	4,263,535	4,810,102	5,235,273
2002	5,982,260	68,565	179,420	420,987	960,352	1,247,308	1,463,587	1,647,849	1,812,094	2,472,326	3,431,568	3,811,534	4,143,048	4,689,683	5,114,828
2003	6,156,994	83,238	206,010	465,594	1,030,178	1,327,075	1,549,825	1,738,945	1,907,837	2,586,777	3,572,674	3,961,657	4,300,174	4,855,774	5,286,949
2004	6,734,554	111,932	280,449	615,494	1,278,879	1,610,803	1,855,778	2,061,398	2,243,098	2,968,169	4,010,897	4,423,150	4,782,507	5,371,578	5,826,206
2005	7,365,689	143,370	362,581	783,762	1,560,659	1,932,055	2,202,354	2,426,492	2,623,077	3,400,596	4,506,197	4,940,249	5,317,903	5,936,944	6,412,897
2006	7,969,813	170,567	418,573	895,044	1,761,119	2,166,188	2,460,559	2,704,549	2,918,422	3,759,733	4,947,104	5,412,038	5,815,385	6,474,937	6,980,130
2007	8,621,963	219,494	503,678	1,030,091	1,971,021	2,411,916	2,729,468	2,992,467	3,223,396	4,128,240	5,401,825	5,898,437	6,329,354	7,032,507	7,571,084
2008	8,206,158	173,257	397,957	825,898	1,656,771	2,072,196	2,380,698	2,639,100	2,867,730	3,772,889	5,055,298	5,554,583	5,986,923	6,690,342	7,228,036
2009	7,578,641	126,242	281,687	601,504	1,304,627	1,684,139	1,973,637	2,219,853	2,439,146	3,317,402	4,570,256	5,057,761	5,478,063	6,159,780	6,678,194
2010	8,039,779	166,727	366,563	742,989	1,517,146	1,922,058	2,228,360	2,486,918	2,716,199	3,631,364	4,927,262	5,430,952	5,864,278	6,564,169	7,095,680
2011	8,317,188	144,984	342,338	737,251	1,555,701	1,984,960	2,306,674	2,578,137	2,818,879	3,774,978	5,120,188	5,640,585	6,088,552	6,810,489	7,356,627
2012	9,041,744	219,067	501,374	1,017,057	1,976,738	2,446,464	2,791,205	3,078,337	3,330,944	4,327,899	5,722,980	6,261,677	6,725,553	7,473,507	8,037,800
2013	9,033,840	168,992	384,881	815,662	1,719,794	2,195,723	2,550,046	2,847,179	3,109,388	4,143,498	5,591,750	6,151,678	6,633,611	7,409,491	7,995,603
2014	9,708,663	207,145	475,714	986,078	1,997,819	2,514,973	2,895,712	3,212,471	3,490,867	4,583,416	6,104,146	6,690,287	7,193,799	8,002,581	8,614,544
2015	10,142,620	214,647	495,201	1,033,473	2,094,906	2,636,987	3,034,889	3,366,920	3,658,556	4,803,327	6,389,094	6,997,737	7,519,683	8,360,826	8,998,075
2016	10,156,612	204,934	460,894	966,465	2,003,066	2,544,904	2,946,100	3,280,595	3,574,828	4,729,405	6,333,469	6,950,051	7,479,129	8,331,664	8,979,705
2017	10,936,500	256,250	565,453	1,150,471	2,301,449	2,889,391	3,321,003	3,680,328	3,995,037	5,220,949	6,913,130	7,561,368	8,118,508	9,019,611	9,706,054
2018	11,563,883	241,954	570,189	1,196,670	2,420,025	3,044,552	3,503,876	3,884,856	4,217,996	5,511,117	7,289,834	7,969,121	8,552,653	9,499,838	10,221,814
2019	11,882,850	214,487	522,449	1,140,517	2,393,383	3,042,810	3,523,664	3,921,774	4,269,727	5,621,027	7,472,188	8,177,266	8,783,586	9,766,007	10,517,131
Total income tax (millions of dollars): [2]
2001	884,931	20,363	57,329	138,735	293,968	358,761	401,189	434,411	462,288	563,525	681,732	721,756	755,307	807,098	841,587
2002	794,282	16,728	48,388	119,894	262,820	323,052	362,355	393,407	419,871	513,320	620,746	656,602	687,111	731,873	760,808
2003	745,514	17,169	47,192	114,559	251,146	308,878	345,930	374,786	399,176	483,792	582,130	617,015	645,885	688,113	715,163
2004	829,096	21,437	59,739	141,937	300,802	367,392	409,259	440,979	467,165	558,007	659,803	694,983	724,830	769,074	797,040
2005	931,693	27,171	75,151	176,152	361,264	437,452	485,042	520,483	549,068	647,115	755,252	792,545	823,488	869,272	898,262
2006	1,020,438	30,860	83,499	196,358	401,610	485,109	536,823	575,603	607,088	715,108	832,153	872,385	905,569	954,823	985,657
2007	1,111,872	38,587	97,979	220,636	442,633	534,150	590,292	631,830	666,021	782,903	909,392	952,964	988,633	1,041,166	1,074,502
2008	1,028,669	33,136	83,085	187,200	385,857	470,285	523,500	563,684	597,246	711,873	837,561	880,244	915,035	965,691	996,815
2009	863,486	26,328	64,253	146,030	313,826	387,828	435,662	472,299	502,274	603,504	712,700	749,022	777,801	818,789	842,286
2010	949,144	31,453	76,390	169,734	354,810	436,043	488,303	528,045	560,649	670,319	787,407	826,796	858,000	901,560	926,782
2011	1,042,571	26,488	70,545	168,222	365,518	453,679	510,000	553,220	588,967	711,663	846,579	892,616	929,529	981,800	1,012,460
2012	1,184,978	38,563	97,902	220,414	451,328	550,934	613,192	660,121	698,543	831,445	975,377	1,024,046	1,063,388	1,119,368	1,152,063
2013	1,231,911	40,764	100,868	227,623	465,705	567,786	631,900	680,817	721,242	859,863	1,011,220	1,062,798	1,104,510	1,163,238	1,197,603
2014	1,374,379	49,740	123,288	272,826	542,640	656,229	727,556	780,687	824,153	974,124	1,137,716	1,192,679	1,236,678	1,299,383	1,336,637
2015	1,454,325	51,375	127,236	283,577	567,697	688,137	763,764	820,335	866,447	1,026,601	1,201,501	1,259,698	1,306,271	1,373,073	1,413,200
2016	1,442,385	46,845	115,384	261,423	538,257	658,950	735,763	793,331	839,898	1,002,072	1,180,713	1,240,010	1,288,231	1,356,952	1,398,523
2017	1,601,309	61,750	143,024	309,765	615,979	748,944	833,142	895,962	946,954	1,122,158	1,314,957	1,378,757	1,430,369	1,505,513	1,551,537
2018	1,536,178	55,455	139,455	310,631	615,716	737,900	815,821	876,470	926,367	1,096,343	1,279,036	1,336,041	1,382,868	1,450,202	1,491,041
2019	1,578,661	49,185	128,817	297,920	612,027	739,896	822,470	886,070	938,429	1,117,856	1,308,416	1,367,843	1,416,809	1,487,163	1,530,288
Average tax rate (percentage): [3]
2001	14.47	24.04	26.46	28.17	27.60	26.36	25.35	24.57	23.91	21.68	19.17	18.35	17.72	16.78	16.08
2002	13.28	24.40	26.97	28.48	27.37	25.90	24.76	23.87	23.17	20.76	18.09	17.23	16.58	15.61	14.87
2003	12.11	20.63	22.91	24.60	24.38	23.28	22.32	21.55	20.92	18.70	16.29	15.57	15.02	14.17	13.53
2004	12.31	19.15	21.30	23.06	23.52	22.81	22.05	21.39	20.83	18.80	16.45	15.71	15.16	14.32	13.68
2005	12.65	18.95	20.73	22.48	23.15	22.64	22.02	21.45	20.93	19.03	16.76	16.04	15.49	14.64	14.01
2006	12.80	18.09	19.95	21.94	22.80	22.39	21.82	21.28	20.80	19.02	16.82	16.12	15.57	14.75	14.12
2007	12.90	17.58	19.45	21.42	22.46	22.15	21.63	21.11	20.66	18.96	16.83	16.16	15.62	14.81	14.19
2008	12.54	19.13	20.88	22.67	23.29	22.70	21.99	21.36	20.83	18.87	16.57	15.85	15.28	14.43	13.79
2009	11.39	20.86	22.81	24.28	24.05	23.03	22.07	21.28	20.59	18.19	15.59	14.81	14.20	13.29	12.61
2010	11.81	18.87	20.84	22.84	23.39	22.69	21.91	21.23	20.64	18.46	15.98	15.22	14.63	13.73	13.06
2011	12.54	18.27	20.61	22.82	23.50	22.86	22.11	21.46	20.89	18.85	16.53	15.82	15.27	14.42	13.76
2012	13.11	17.60	19.53	21.67	22.83	22.52	21.97	21.44	20.97	19.21	17.04	16.35	15.81	14.98	14.33
2013	13.64	24.12	26.21	27.91	27.08	25.86	24.78	23.91	23.20	20.75	18.08	17.28	16.65	15.70	14.98
2014	14.16	24.01	25.92	27.67	27.16	26.09	25.13	24.30	23.61	21.25	18.64	17.83	17.19	16.24	15.52
2015	14.34	23.93	25.69	27.44	27.10	26.10	25.17	24.36	23.68	21.37	18.81	18.00	17.37	16.42	15.71
2016	14.20	22.86	25.03	27.05	26.87	25.89	24.97	24.18	23.49	21.19	18.64	17.84	17.22	16.29	15.57
2017	14.64	24.10	25.29	26.93	26.76	25.92	25.09	24.34	23.70	21.49	19.02	18.23	17.62	16.69	15.99
2018	13.28	22.92	24.46	25.96	25.44	24.24	23.28	22.56	21.96	19.89	17.55	16.77	16.17	15.27	14.59
2019	13.29	22.93	24.66	26.12	25.57	24.32	23.34	22.59	21.98	19.89	17.51	16.73	16.13	15.23	14.55
Adjusted gross income share (percentage):
2001	100.00	1.38	3.54	8.05	17.41	22.25	25.87	28.91	31.61	42.50	58.13	64.31	69.71	78.64	85.60
2002	100.00	1.15	3.00	7.04	16.05	20.85	24.47	27.55	30.29	41.33	57.36	63.71	69.26	78.39	85.50
2003	100.00	1.35	3.35	7.56	16.73	21.55	25.17	28.24	30.99	42.01	58.03	64.34	69.84	78.87	85.87
2004	100.00	1.66	4.16	9.14	18.99	23.92	27.56	30.61	33.31	44.07	59.56	65.68	71.01	79.76	86.51
2005	100.00	1.95	4.92	10.64	21.19	26.23	29.90	32.94	35.61	46.17	61.18	67.07	72.20	80.60	87.06
2006	100.00	2.14	5.25	11.23	22.10	27.18	30.87	33.93	36.62	47.17	62.07	67.91	72.97	81.24	87.58
2007	100.00	2.55	5.84	11.95	22.86	27.97	31.66	34.71	37.39	47.88	62.65	68.41	73.41	81.57	87.81
2008	100.00	2.11	4.85	10.06	20.19	25.25	29.01	32.16	34.95	45.98	61.60	67.69	72.96	81.53	88.08
2009	100.00	1.67	3.72	7.94	17.21	22.22	26.04	29.29	32.18	43.77	60.30	66.74	72.28	81.28	88.12
2010	100.00	2.07	4.56	9.24	18.87	23.91	27.72	30.93	33.78	45.17	61.29	67.55	72.94	81.65	88.26
2011	100.00	1.74	4.12	8.86	18.70	23.87	27.73	31.00	33.89	45.39	61.56	67.82	73.20	81.88	88.45
2012	100.00	2.42	5.55	11.25	21.86	27.06	30.87	34.05	36.84	47.87	63.30	69.25	74.38	82.66	88.90
2013	100.00	1.87	4.26	9.03	19.04	24.31	28.23	31.52	34.42	45.87	61.90	68.10	73.43	82.02	88.51
2014	100.00	2.13	4.90	10.16	20.58	25.90	29.83	33.09	35.96	47.21	62.87	68.91	74.10	82.43	88.73
2015	100.00	2.12	4.88	10.19	20.65	26.00	29.92	33.20	36.07	47.36	62.99	68.99	74.14	82.43	88.72
2016	100.00	2.02	4.54	9.52	19.72	25.06	29.01	32.30	35.20	46.56	62.36	68.43	73.64	82.03	88.41
2017	100.00	2.34	5.17	10.52	21.04	26.42	30.37	33.65	36.53	47.74	63.21	69.14	74.23	82.47	88.75
2018	100.00	2.09	4.93	10.35	20.93	26.33	30.30	33.59	36.48	47.66	63.04	68.91	73.96	82.15	88.39
2019	100.00	1.81	4.40	9.60	20.14	25.61	29.65	33.00	35.93	47.30	62.88	68.82	73.92	82.19	88.51
Total income tax share (percentage):
2001	100.00	2.30	6.48	15.68	33.22	40.54	45.34	49.09	52.24	63.68	77.04	81.56	85.35	91.20	95.10
2002	100.00	2.11	6.09	15.09	33.09	40.67	45.62	49.53	52.86	64.63	78.15	82.67	86.51	92.14	95.79
2003	100.00	2.30	6.33	15.37	33.69	41.43	46.40	50.27	53.54	64.89	78.08	82.76	86.64	92.30	95.93
2004	100.00	2.59	7.21	17.12	36.28	44.31	49.36	53.19	56.35	67.30	79.58	83.82	87.42	92.76	96.13
2005	100.00	2.92	8.07	18.91	38.78	46.95	52.06	55.86	58.93	69.46	81.06	85.07	88.39	93.30	96.41
2006	100.00	3.02	8.18	19.24	39.36	47.54	52.61	56.41	59.49	70.08	81.55	85.49	88.74	93.57	96.59
2007	100.00	3.47	8.81	19.84	39.81	48.04	53.09	56.83	59.90	70.41	81.79	85.71	88.92	93.64	96.64
2008	100.00	3.22	8.08	18.20	37.51	45.72	50.89	54.80	58.06	69.20	81.42	85.57	88.95	93.88	96.90
2009	100.00	3.05	7.44	16.91	36.34	44.91	50.45	54.70	58.17	69.89	82.54	86.74	90.08	94.82	97.54
2010	100.00	3.31	8.05	17.88	37.38	45.94	51.45	55.63	59.07	70.62	82.96	87.11	90.40	94.99	97.64
2011	100.00	2.54	6.77	16.14	35.06	43.52	48.92	53.06	56.49	68.26	81.20	85.62	89.16	94.17	97.11
2012	100.00	3.25	8.26	18.60	38.09	46.49	51.75	55.71	58.95	70.17	82.31	86.42	89.74	94.46	97.22
2013	100.00	3.31	8.19	18.48	37.80	46.09	51.29	55.27	58.55	69.80	82.09	86.27	89.66	94.43	97.22
2014	100.00	3.62	8.97	19.85	39.48	47.75	52.94	56.80	59.97	70.88	82.78	86.78	89.98	94.54	97.25
2015	100.00	3.53	8.75	19.50	39.04	47.32	52.52	56.41	59.58	70.59	82.62	86.62	89.82	94.41	97.17
2016	100.00	3.25	8.00	18.12	37.32	45.68	51.01	55.00	58.23	69.47	81.86	85.97	89.31	94.08	96.96
2017	100.00	3.86	8.93	19.34	38.47	46.77	52.03	55.95	59.14	70.08	82.12	86.10	89.33	94.02	96.89
2018	100.00	3.61	9.08	20.22	40.08	48.03	53.11	57.06	60.30	71.37	83.26	86.97	90.02	94.40	97.06
2019	100.00	3.12	8.16	18.87	38.77	46.87	52.10	56.13	59.44	70.81	82.88	86.65	89.75	94.20	96.94
Notes: N/A– Not applicable. [1] For Table 4.1, constant dollars were calculated using the U.S. Bureau of Labor Statistics’ consumer price index for urban consumers (CPI-U, 1990=100). For 2019 the CPI-U = 255.657. [2] Total income tax was the sum of income tax after credits (including the subtraction of excess advance premium tax credit repayment, the earned income credit, American opportunity credit, health coverage tax credit, and the regulated investment credit credit) limited to zero plus net investment income tax from Form 8960 and the tax fromForm 4970, Tax on Accumulation Distribution of Trusts. It does not include any refundable portions of these credits. [3] The average tax rate was computed by dividing total income tax (see footnote 2) by adjusted gross income. [4] The total number of returns does not include the returns filed by individuals to only receive the economic stimulus payment and who had no other reason to file. Source: IRS, Statistics of Income Division, Publication 1304, November 2021

Table 4.2. All Individual Returns Excluding Dependents: Number of Returns, Shares of Adjusted Gross Income (AGI) and Total Income Tax, and Average Tax Rates, by Selected Ascending Cumulative Percentiles of Returns Based on Income Size Using the Definition of AGI for Each Year, Tax Years 2001-2019
[All figures are estimates based on samples]
Item, tax year	Total	Ascending cumulative percentiles
Bottom 50 percent	Bottom 75 percent	Bottom 90 percent	Bottom 95 percent	Bottom 99 Percent
Number of returns:
2001	119,370,886	59,685,443	89,528,165	107,433,797	113,402,342	118,177,177
2002	119,850,561	59,925,281	89,887,921	107,865,505	113,858,033	118,652,055
2003	120,758,947	60,379,474	90,569,210	108,683,052	114,721,000	119,551,358
2004	122,509,974	61,254,987	91,882,481	110,258,977	116,384,475	121,284,874
2005	124,673,055	62,336,528	93,504,791	112,205,750	118,439,402	123,426,324
2006	128,441,165	64,220,583	96,330,874	115,597,049	122,019,107	127,156,753
2007	[3] 132,654,911	66,327,456	99,491,183	119,389,420	126,022,165	131,328,362
2008	132,891,770	66,445,885	99,668,828	119,602,593	126,247,182	131,562,852
2009	132,619,936	66,309,968	99,464,952	119,357,942	125,988,939	131,293,737
2010	135,033,492	67,516,746	101,275,119	121,530,143	128,281,817	133,683,157
2011	136,585,712	68,292,856	102,439,284	122,927,141	129,756,426	135,219,855
2012	136,080,353	68,040,177	102,060,265	122,472,318	129,276,335	134,719,549
2013	138,313,155	69,156,578	103,734,866	124,481,840	131,397,497	136,930,023
2014	139,562,034	69,781,017	104,671,526	125,605,831	132,583,932	138,166,414
2015	141,204,625	70,602,313	105,903,469	127,084,163	134,144,394	139,792,579
2016	140,888,785	70,444,393	105,666,589	126,799,907	133,844,346	139,479,897
2017	143,295,160	71,647,580	107,471,370	128,965,644	136,130,402	141,862,208
2018	144,317,866	72,158,933	108,238,400	129,886,079	137,101,973	142,874,687
2019	148,245,929	74,122,965	111,184,447	133,421,336	140,833,633	146,763,470
Adjusted gross income (millions of dollars):	3,928,063	2.7%
2001	6,116,274	881,001	2,183,088	3,516,624	4,182,711	5,051,346
2002	5,982,260	867,431	2,170,726	3,509,933	4,170,166	5,021,907
2003	6,156,994	870,045	2,195,336	3,570,217	4,249,157	5,126,816
2004	6,734,554	908,348	2,311,404	3,766,385	4,491,456	5,455,674
2005	7,365,689	952,792	2,425,440	3,965,094	4,742,612	5,805,030
2006	7,969,813	989,682	2,557,775	4,210,079	5,051,390	6,208,693
2007	8,621,963	1,050,879	2,723,525	4,493,722	5,398,566	6,650,942
2008	8,206,158	978,122	2,651,575	4,433,269	5,338,428	6,549,387
2009	7,578,641	900,447	2,520,880	4,261,239	5,139,495	6,274,014
2010	8,039,779	944,099	2,608,826	4,408,415	5,323,580	6,522,633
2011	8,317,188	960,561	2,676,602	4,542,210	5,498,309	6,761,487
2012	9,041,744	1,003,944	2,780,067	4,713,845	5,710,800	7,065,006
2013	9,033,840	1,038,237	2,882,162	4,890,343	5,924,452	7,314,046
2014	9,708,663	1,094,119	3,018,376	5,125,247	6,217,796	7,710,844
2015	10,142,620	1,144,545	3,144,883	5,339,293	6,484,064	8,047,714
2016	10,156,612	1,176,907	3,206,562	5,427,208	6,581,784	8,153,546
2017	10,936,500	1,230,446	3,375,132	5,715,551	6,941,463	8,635,051
2018	11,563,883	1,342,069	3,594,762	6,052,766	7,345,887	9,143,858
2019	11,882,850	1,365,719	3,705,584	6,261,823	7,613,122	9,489,467
Total income tax (millions of dollars): [1]	318,967	2.8%
2001	884,931	43,344	163,175	321,406	422,643	590,963
2002	794,282	33,474	137,679	280,962	374,411	531,462
2003	745,514	30,351	128,499	261,722	346,338	494,368
2004	829,096	32,054	134,114	271,089	361,932	528,294
2005	931,693	33,431	139,143	284,578	382,625	570,430
2006	1,020,438	34,781	148,053	305,330	413,350	618,828
2007	1,111,872	37,371	158,909	328,969	445,851	669,239
2008	1,028,669	31,857	148,425	316,797	431,423	642,812
2009	863,486	21,200	114,465	259,982	361,213	549,660
2010	949,144	22,363	122,347	278,824	388,495	594,333
2011	1,042,571	30,109	149,953	330,907	453,605	677,052
2012	1,184,978	32,915	160,934	353,533	486,435	733,650
2013	1,231,911	34,307	169,113	372,048	510,669	766,206
2014	1,374,379	37,740	181,700	400,255	550,226	831,738
2015	1,454,325	41,125	194,628	427,723	587,879	886,628
2016	1,442,385	43,863	202,378	440,313	602,487	904,128
2017	1,601,309	49,772	222,552	479,151	654,355	985,330
2018	1,536,178	45,137	200,137	439,835	609,811	920,462
2019	1,578,661	48,373	210,818	460,789	640,232	966,634
Average tax rate (percentage): [2]
2001	14.47	4.92	7.47	9.14	10.10	11.70
2002	13.28	3.86	6.34	8.00	8.98	10.58
2003	12.11	3.49	5.85	7.33	8.15	9.64
2004	12.31	3.53	5.80	7.20	8.06	9.68
2005	12.65	3.51	5.74	7.18	8.07	9.83
2006	12.80	3.51	5.79	7.25	8.18	9.97
2007	12.90	3.56	5.83	7.32	8.26	10.06
2008	12.54	3.26	5.60	7.15	8.08	9.81
2009	11.39	2.35	4.54	6.10	7.03	8.76
2010	11.81	2.37	4.69	6.32	7.30	9.11
2011	12.54	3.13	5.60	7.29	8.25	10.01
2012	13.11	3.28	5.79	7.50	8.52	10.38
2013	13.64	3.30	5.87	7.61	8.62	10.48
2014	14.16	3.45	6.02	7.81	8.85	10.79
2015	14.34	3.59	6.19	8.01	9.07	11.02
2016	14.20	3.73	6.31	8.11	9.15	11.09
2017	14.64	4.05	6.59	8.38	9.43	11.41
2018	13.28	3.36	5.57	7.27	8.30	10.07
2019	13.29	3.54	5.69	7.36	8.41	10.19
Adjusted gross income share (percentage):
2001	100.00	14.40	35.69	57.50	68.39	82.59
2002	100.00	14.50	36.29	58.67	69.71	83.95
2003	100.00	14.13	35.66	57.99	69.01	83.27
2004	100.00	13.49	34.32	55.93	66.69	81.01
2005	100.00	12.94	32.93	53.83	64.39	78.81
2006	100.00	12.42	32.09	52.83	63.38	77.90
2007	100.00	12.19	31.59	52.12	62.61	77.14
2008	100.00	11.92	32.31	54.02	65.05	79.81
2009	100.00	11.88	33.26	56.23	67.82	82.79
2010	100.00	11.74	32.45	54.83	66.22	81.13
2011	100.00	11.55	32.18	54.61	66.11	81.30
2012	100.00	11.10	30.75	52.13	63.16	78.14
2013	100.00	11.49	31.90	54.13	65.58	80.96
2014	100.00	11.27	31.09	52.79	64.04	79.42
2015	100.00	11.28	31.01	52.64	63.93	79.35
2016	100.00	11.59	31.57	53.44	64.80	80.28
2017	100.00	11.25	30.86	52.26	63.47	78.96
2018	100.00	11.61	31.09	52.34	63.52	79.07
2019	100.00	11.49	31.18	52.70	64.07	79.86
Total income tax share (percentage):
2001	100.00	4.90	18.44	36.32	47.76	66.78
2002	100.00	4.21	17.33	35.37	47.14	66.91
2003	100.00	4.07	17.24	35.11	46.46	66.31
2004	100.00	3.87	16.18	32.70	43.65	63.72
2005	100.00	3.59	14.93	30.54	41.07	61.23
2006	100.00	3.41	14.51	29.92	40.51	60.64
2007	100.00	3.36	14.29	29.59	40.10	60.19
2008	100.00	3.10	14.43	30.80	41.94	62.49
2009	100.00	2.46	13.26	30.11	41.83	63.66
2010	100.00	2.36	12.89	29.38	40.93	62.62
2011	100.00	2.89	14.38	31.74	43.51	64.94
2012	100.00	2.78	13.58	29.83	41.05	61.91
2013	100.00	2.78	13.73	30.20	41.45	62.20
2014	100.00	2.75	13.22	29.12	40.03	60.52
2015	100.00	2.83	13.38	29.41	40.42	60.96
2016	100.00	3.04	14.03	30.53	41.77	62.68
2017	100.00	3.11	13.90	29.92	40.86	61.53
2018	100.00	2.94	13.03	28.63	39.70	59.92
2019	100.00	3.06	13.35	29.19	40.56	61.23
N/A– Not applicable. [1] Total income tax was the sum of income tax after credits (including the subtraction of excess advance premium tax credit repayment, the earned income credit, American opportunity credit, health coverage tax credit and the regulated investment credit credit) limited to zero plus net investment income tax from Form 8960 and the tax from Form 4970, Tax on Accumulation Distribution of Trusts. [2] The average tax rate was computed by dividing total income tax (see footnote 1) by adjusted gross income. [3] The total number of returns does not include the returns filed by individuals to only receive the economic stimulus payment and who had no other reason to file. Source: IRS, Statistics of Income Division, Publication 1304, November 2021

Video

The U.S. Tax Wedge

The OECD reported that the U.S. tax wedge for the average single worker decreased by 1.4 percentage points from 29.7% in 2019 to 28.3% in 2020, which is still less than the OECD average for all countries—34.6% in the same year. Meanwhile, the take-home pay of an average single U.S. worker, after tax and benefits, was 77.6% of their gross wage, compared with the OECD average of 75.2%.

However, while pandemic-based legislation is thought to have contributed to the decrease, according to The Tax Foundation, these measures were primarily designed to reduce the tax burden for families with children rather than that of a single taxpayer with no children.

So what does this mean in dollars? A tax wedge of 28.3% works out to about $18,368 of an “average wage earner’s” salary, meaning the average worker contributed that much to the federal government, according to OECD calculations.

The OECD tax wedge only includes these three taxes: income, Social Security, and Medicare. It doesn’t include the sales taxes that individuals regularly pay, nor property or vehicle taxes, nor even state income taxes.

Don’t let taxes get you down

You can’t escape taxes, so the best thing you can do is learn how to better manage your taxes and understand how the tax code can work in your favor. Fortunately, the IRS has increased income limits for all tax brackets, giving you an opportunity to earn more income without the fear of stepping into another tax bracket.

Since income plays a large role in your taxes, create a strategy that allows you to diversify your income. You can never go wrong when you earn an extra stream of income in the stock market, allowing you to take advantage of favorable capital gains rates if you hold your investments over a year. There’s even a chance you’ll pay no taxes on your gains if your income is under certain limits.

Calculating Taxable Income Using Exemptions and Deductions

Of course, calculating how much you owe in taxes is not quite that simple. For starters, federal tax rates apply only to taxable income. This is different than your total income, otherwise known as gross income. Taxable income is always lower than gross income since the U.S. allows taxpayers to deduct certain income from their gross income to determine taxable income.

To calculate taxable income, you begin by making certain adjustments from gross income to arrive at adjusted gross income (AGI). Once you have calculated adjusted gross income, you can subtract any deductions for which you qualify (either itemized or standard) to arrive at taxable income.

Note that there are no longer personal exemptions at the federal level. Prior to 2018, taxpayers could claim a personal exemption, which lowered taxable income. The tax plan signed in late 2017 eliminated the personal exemption, though.

Deductions are somewhat more complicated. Many taxpayers claim the standard deduction, which varies depending on filing status, as shown in the table below.

2021 – 2022 Federal Standard Deductions

Filing StatusStandard Deduction AmountSingle$12,550Married, Filing Jointly$25,100Married, Filing Separately$12,550Head of Household$18,800

Some taxpayers, however, may choose to itemize their deductions. This means subtracting certain eligible expenses and expenditures. Possible deductions include those for student loan interest payments, contributions to an IRA, moving expenses and health-insurance contributions for self-employed persons. The most common itemized deductions also include:

Deduction for state and local taxes paid: Also known as the SALT deduction, it allows taxpayers to deduct up to $10,000 of any state and local property taxes plus either their state and local income taxes or sales taxes.
Deduction for mortgage interest paid: Interest paid on the mortgages of up to two homes, with it being limited to your first $1 million of debt. Homes purchased after Dec. 15, 2017 have this lowered to the first $750,000 of the mortgage.
Deduction for charitable contributions
Deduction for medical expenses that exceed 7.5% of AGI

Keep in mind that most taxpayers don’t itemize their deductions. If the standard deduction is larger than the sum of your itemized deductions (as it is for many taxpayers), you’ll receive the standard deduction.

Once you have subtracted deductions from your adjusted gross income, you have your taxable income. If your taxable income is zero, that means you do not owe any income tax.

Paying Your Taxes

If you aren’t getting a tax refund and instead owe money come tax day, there may be a way to lessen the sting. For starters, you should still file your taxes on time. Otherwise, you will also have to pay a fee for filing late.

If you don’t think you can afford your full tax bill, then you should pay as much as you can and contact the IRS. The agency may be able to offer you a few payment options to help you pay off your bill. For example, the IRS may offer a short-term extension or temporarily delay collection. You may also have the option to pay your remaining bill over multiple installments. You will likely still pay any interest charges on overdue balances, but in some cases, the IRS may even waive penalties or fees. Again, you should call the agency at the number above to discuss your options.

As you pay your tax bill, another thing to consider is using a tax-filing service that lets you pay your taxes by credit card. That way you can at least get valuable credit card rewards and points when you pay your bill. The IRS has authorized three payment processors to collect tax payments by credit card: PayUSAtax, Pay1040 and ACI Payments, Inc. However, it’s important to keep in mind that all three processors charge fees of nearly 2% of your payment for credit card transactions. Double check that any rewards you earn are worth that extra cost, though.

The cheapest way to pay a tax bill is still via a check or via IRS Direct Pay, which allows you to pay your bill directly from a savings or checking account. All major tax filing services will provide you with instructions for both of these payment options.

What is the average tax rate paid by the 1%?

According to the Congressional Budget Office, the average federal tax rate among households in the top 1% of the income distribution is about 32%. The Tax Policy Center's numbers, meanwhile, are somewhat similar, with its finding that tax rate among the 1% is 29.4%.