According to the latest IRS data, the top 1% of earners paid 40.4% of all federal income taxes in 2022. This underscores the extent to which the burden of the income tax system falls on taxpayers from the highest income groups.
The top 50 percent of all taxpayers paid 97 percent of all federal individual income taxes, while the bottom 50 percent paid the remaining 3 percent.
The top 1% of earners typically pay much more in taxes than many other Americans. Nationwide, this group contributes 45% of total personal income taxes collected. However, the top 1% doesn't pay the same amount everywhere. Therefore, some states may be more dependent on this group than others for tax revenue.
Who Was The Highest Taxpayer In India In 2022 ? In 2022, Akshay Kumar, a Bollywood celebrity was the highest taxpayer in India by paying an income tax of ₹29.5 crore.
In India, the highest taxpayer is Akshay Kumar, an Actor and Film Producer. He belongs to the Media and Entertainment industry. Who is the highest individual taxpayer in the world? As per FY 2021 reports, Jeff Bezos was the highest individual taxpayer in the world by, paying over USD 2.4 billion in taxes.
In 2021, the top 5% of earners — people with incomes $252,840 and above — collectively paid over $1.4 trillion in income taxes, or about 66% of the national total. If you include the top 10% — everyone who made at least $169,800 — that figure rises to $1.7 trillion, or 76% of the total.
You generally don't have to pay taxes if your income is less than the standard deduction or the total of your itemized deductions, if you have a certain number of dependents, if you work abroad and are below the required thresholds, or if you're a qualifying non-profit organization.
Combining direct and indirect taxes, as well as taxes from state and local government, the average American family paid $17,902 in taxes in 2021.
In the United States as a whole, you'd need to earn nearly $788,000 to be in the top 1% of earners, SmartAsset reports. To crack the top 5%, you'd have to take in at least $290,000. The figures are estimates, drawn from IRS data for individual filers in 2021 and adjusted to 2024 dollars.
NOTE: The 7.65% tax rate is the combined rate for Social Security and Medicare. The Social Security portion (OASDI) is 6.20% on earnings up to the applicable taxable maximum amount (see below).
Taxes provide revenue for federal, local, and state governments to fund essential services--defense, highways, police, a justice system--that benefit all citizens, who could not provide such services very effectively for themselves.
The average annual average salary in the U.S. is $63,795. The median annual salary, which is often less skewed by outlying numbers, is $59,384. It's worth noting that average and median salaries vary quite a bit by state.
The requirement to pay taxes is not voluntary and is clearly set forth in section 1 of the Internal Revenue Code, which imposes a tax on the taxable income of individuals, estates, and trusts as determined by the tables set forth in that section.
Which Are the Tax-Free States? Alaska, Florida, Nevada, New Hampshire, South Dakota, Tennessee, Texas, Washington, and Wyoming are the only states that do not levy a state income tax. Note that Washington does levy a state capital gains tax on certain high earners.
High-Income Taxpayers Paid the Majority of Federal Income Taxes. In 2021, the bottom half of taxpayers earned 10.4 percent of total AGI and paid 2.3 percent of all federal individual income taxes. The top 1 percent earned 26.3 percent of total AGI and paid 45.8 percent of all federal income taxes.
Federal income tax rates range from 10% up to a top marginal rate of 37%. The U.S. median household income (adjusted for inflation) in 2023 was $77,719.
Elon Musk to pay record-breaking $12 billion tax bill. CNBC's Robert Frank reports on Elon Musk's tax bill which is the largest in history. Musk will pay a total of $12 billion for 2021.
Sources of Federal Revenue
So far in FY 2025, individual income taxes have accounted for 49% of total revenue while Social Security and Medicare taxes made up another 40%. Government revenue also comes from payments to federal agencies like the U.S. Department of the Interior. Have you visited a national park recently?
While many countries have high income tax rates, Ivory Coast currently holds the record for the highest top marginal income tax rate in the world, at a staggering 60%.
Heavyweight boxer Anthony Joshua is 88th out of 100 on the index, after his company posted a turnover of £129m. He contributed over £12m in UK tax. Author JK Rowling ranks 31st on the list, having paid £40m in UK taxes in the past 12 months. One below at 32nd is Ed Sheeran who paid more than £36m in UK tax.