Table 1
Summary of Federal Individual Income Tax Data, 2006
(Updated July 2008)
| Number of Returns with Positive AGI | AGI ($ millions) | Income Taxes Paid ($ millions) | Group's Share of Total AGI | Group's Share of Income Taxes | Income Split Point | Average Tax Rate |
All Taxpayers | 135,719,160 | $8,122,040 | $1,023,739 | 100% | 100% | - | 12.60% |
Top 1% | 1,357,192 | $1,791,886 | $408,369 | 22.06% | 39.89% | > $388,806 | 22.79% |
Top 2-5% | 5,428,766 | $1,185,828 | $207,311 | 14.60% | 20.25% |
| 17.48% |
Top 5% | 6,785,958 | $2,977,714 | $615,680 | 36.66% | 60.14% | > $153,542 | 20.68% |
Top 6-10% | 6,785,958 | $865,430 | $109,060 | 10.66% | 10.65% |
| 12.60% |
Top 10% | 13,571,916 | $3,843,144 | $724,740 | 47.32% | 70.79% |
> $108,904 | 18.86% |
Top 11-25% | 20,357,874 | $1,692,686 | $158,413 | 20.84% | 15.47% | 9.36% | |
Top 25% | 33,929,790 | $5,535,830 | $883,153 | 68.16% | 86.27% | > $64,702 | 15.95% |
Top 26-50% | 33,929,790 | $1,569,769 | $110,023 | 19.33% | 10.75% |
| 7.01% |
Top 50% | 67,859,580 | $7,105,599 | $993,176 | 87.49% | 97.01% | > $31,987 | 13.98% |
Bottom 50% | 67,859,580 | $1,016,441 | $30,563 | 12.51% | 2.99% | < $31,987 | 3.01% |
Source: Internal Revenue Service, http://www.irs.gov/taxstats/indtaxstats/article/0,,id=133521,00.html ("Individual Income Tax Returns with Positive Adjusted Gross Income (AGI) Returns Classified by Tax Percentile - Early Release")
Table 2
Number of Federal Individual Income Tax Returns Filed with Positive AGI 1980-2006
(In thousands)
Year | Total | Top 1% | Top 2-5% | Top 5% | Top 6-10% | Top 10% | Top 11-25% | Top 25% | Top 26-50% | Top 50% | Bottom 50% |
1980 | 93,239 | 932 | 3,730 | 4,662 | 4,662 | 9,324 | 13,986 | 23,310 | 23,310 | 46,619 | 46,619 |
1981 | 94,587 | 946 | 3,783 | 4,729 | 4,729 | 9,459 | 14,188 | 23,647 | 23,647 | 47,293 | 47,293 |
1982 | 94,426 | 944 | 3,777 | 4,721 | 4,721 | 9,443 | 14,164 | 23,607 | 23,607 | 47,213 | 47,213 |
1983 | 95,331 | 953 | 3,813 | 4,767 | 4,767 | 9,533 | 14,300 | 23,833 | 23,833 | 47,665 | 47,665 |
1984 | 98,436 | 984 | 3,937 | 4,922 | 4,922 | 9,844 | 14,765 | 24,609 | 24,609 | 49,218 | 49,219 |
1985 | 100,625 | 1,006 | 4,025 | 5,031 | 5,031 | 10,063 | 15,094 | 25,156 | 25,156 | 50,313 | 50,313 |
1986 | 102,088 | 1,021 | 4,084 | 5,104 | 5,104 | 10,209 | 15,313 | 25,522 | 25,522 | 51,044 | 51,044 |
1987 | 106,155 | 1,062 | 4,246 | 5,308 | 5,308 | 10,615 | 15,923 | 26,539 | 26,539 | 53,077 | 53,077 |
1988 | 108,873 | 1,089 | 4,355 | 5,444 | 5,444 | 10,887 | 16,331 | 27,218 | 27,218 | 54,436 | 54,436 |
1989 | 111,313 | 1,113 | 4,453 | 5,566 | 5,566 | 11,131 | 16,697 | 27,828 | 27,828 | 55,656 | 55,656 |
1990 | 112,812 | 1,128 | 4,512 | 5,641 | 5,641 | 11,281 | 16,922 | 28,203 | 28,203 | 56,406 | 56,406 |
1991 | 113,804 | 1,138 | 4,552 | 5,690 | 5,690 | 11,380 | 17,071 | 28,451 | 28,451 | 56,902 | 56,902 |
1992 | 112,653 | 1,127 | 4,506 | 5,633 | 5,633 | 11,265 | 16,898 | 28,163 | 28,163 | 56,326 | 56,326 |
1993 | 113,681 | 1,137 | 4,547 | 5,684 | 5,684 | 11,368 | 17,052 | 28,420 | 28,420 | 56,841 | 56,841 |
1994 | 114,990 | 1,150 | 4,600 | 5,749 | 5,749 | 11,499 | 17,248 | 28,747 | 28,747 | 57,495 | 57,495 |
1995 | 117,274 | 1,173 | 4,691 | 5,864 | 5,864 | 11,727 | 17,591 | 29,319 | 29,319 | 58,637 | 58,637 |
1996 | 119,442 | 1,194 | 4,778 | 5,972 | 5,972 | 11,944 | 17,916 | 29,860 | 29,860 | 59,721 | 59,721 |
1997 | 121,503 | 1,215 | 4,860 | 6,075 | 6,075 | 12,150 | 18,225 | 30,376 | 30,376 | 60,752 | 60,752 |
1998 | 123,776 | 1,238 | 4,951 | 6,189 | 6,189 | 12,378 | 18,566 | 30,944 | 30,944 | 61,888 | 61,888 |
1999 | 126,009 | 1,260 | 5,040 | 6,300 | 6,300 | 12,601 | 18,901 | 31,502 | 31,502 | 63,004 | 63,004 |
2000 | 128,227 | 1,282 | 5,129 | 6,411 | 6,411 | 12,823 | 19,234 | 32,057 | 32,057 | 64,114 | 64,114 |
2001 | 128,817 | 1,288 | 5,153 | 6,441 | 6,441 | 12,882 | 19,323 | 32,204 | 32,204 | 64,409 | 64,409 |
2002 | 128,324 | 1,283 | 5,133 | 6,416 | 6,416 | 12,832 | 19,249 | 32,081 | 32,081 | 64,162 | 64,162 |
2003 | 128,610 | 1,286 | 5,144 | 6,430 | 6,430 | 12,861 | 19,291 | 32,152 | 32,152 | 64,305 | 64,305 |
2004 | 130,371 | 1,304 | 5,215 | 6,519 | 6,519 | 13,037 | 19,556 | 32,593 | 32,593 | 65,186 | 65,186 |
2005 | 132,612 | 1,326 | 5,304 | 6,631 | 6,631 | 13,261 | 19,892 | 33,153 | 33,153 | 66,306 | 66,306 |
2006 | 135,719 | 1,357 | 5,429 | 6,786 | 6,786 | 13,572 | 20,358 | 33,930 | 33,930 | 67,860 | 67,860 |
Source: Internal Revenue Service
Table 3
Adjusted Gross Income of Taxpayers in Various Income Brackets, 1980-2006
($ Billions)
Year | Total | Top 1% | Top 2-5% | Top 5% | Top 6-10% | Top 10% | Top 11-25% | Top 25% | Top 26-50% | Top 50% | Bottom 50% |
1980 | $1,627 | $138 | $204 | $342 | $181 | $523 | $400 | $922 | $417 | $1,339 | $288 |
1981 | $1,791 | $149 | $223 | $372 | $201 | $573 | $442 | $1,015 | $458 | $1,473 | $318 |
1982 | $1,876 | $167 | $231 | $398 | $207 | $605 | $460 | $1,065 | $478 | $1,544 | $332 |
1983 | $1,970 | $183 | $245 | $428 | $217 | $646 | $481 | $1,127 | $498 | $1,625 | $344 |
1984 | $2,173 | $210 | $272 | $482 | $240 | $723 | $528 | $1,251 | $543 | $1,794 | $379 |
1985 | $2,344 | $235 | $296 | $531 | $260 | $791 | $567 | $1,359 | $580 | $1,939 | $405 |
1986 | $2,524 | $285 | $323 | $608 | $278 | $887 | $604 | $1,490 | $613 | $2,104 | $421 |
Tax Reform Act of 1986 changed the definition of AGI, so data above and below this line not strictly comparable | |||||||||||
1987 | $2,814 | $347 | $376 | $722 | $316 | $1,038 | $671 | $1,709 | $664 | $2,374 | $440 |
1988 | $3,124 | $474 | $417 | $891 | $342 | $1,233 | $718 | $1,951 | $707 | $2,658 | $466 |
1989 | $3,299 | $468 | $450 | $918 | $368 | $1,287 | $768 | $2,054 | $751 | $2,805 | $494 |
1990 | $3,451 | $483 | $470 | $953 | $385 | $1,338 | $806 | $2,144 | $788 | $2,933 | $519 |
1991 | $3,516 | $457 | $487 | $943 | $400 | $1,343 | $832 | $2,175 | $809 | $2,984 | $532 |
1992 | $3,681 | $524 | $508 | $1,031 | $413 | $1,444 | $856 | $2,299 | $832 | $3,131 | $549 |
1993 | $3,776 | $521 | $528 | $1,048 | $426 | $1,474 | $883 | $2,358 | $854 | $3,212 | $563 |
1994 | $3,961 | $547 | $556 | $1,103 | $449 | $1,552 | $929 | $2,481 | $890 | $3,371 | $590 |
1995 | $4,245 | $620 | $603 | $1,223 | $482 | $1,705 | $985 | $2,690 | $938 | $3,628 | $617 |
1996 | $4,591 | $737 | $657 | $1,394 | $515 | $1,909 | $1,043 | $2,953 | $992 | $3,944 | $646 |
1997 | $5,023 | $873 | $724 | $1,597 | $554 | $2,151 | $1,116 | $3,268 | $1,060 | $4,328 | $695 |
1998 | $5,469 | $1,010 | $786 | $1,797 | $597 | $2,394 | $1,196 | $3,590 | $1,132 | $4,721 | $748 |
1999 | $5,909 | $1,153 | $859 | $2,012 | $641 | $2,653 | $1,274 | $3,927 | $1,199 | $5,126 | $783 |
2000 | $6,424 | $1,337 | $931 | $2,267 | $688 | $2,955 | $1,358 | $4,314 | $1,276 | $5,590 | $834 |
2001 | $6,241 | $1,097 | $899 | $1,996 | $694 | $2,691 | $1,380 | $4,071 | $1,308 | $5,379 | $862 |
2002 | $6,114 | $986 | $882 | $1,868 | $686 | $2,553 | $1,382 | $3,936 | $1,309 | $5,244 | $870 |
2003 | $6,288 | $1,055 | $906 | $1,961 | $703 | $2,663 | $1,415 | $4,078 | 1,330 | $5,408 | $880 |
2004 | $6,875 | $1,306 | $993 | $2,300 | $750 | $3,049 | $1,497 | $4,546 | $1,406 | $5,953 | $922 |
2005 | $7,508 | $1,592 | $1,092 | $2,684 | $803 | $3,487 | $1,582 | $5,069 | $1,475 | $6,545 | $963 |
2006 | $8,122 | $1,792 | $1,186 | $2,978 | $865 | $3,843 | $1,693 | $5,536 | $1,570 | $7,106 | $1,016 |
Source: Internal Revenue Service
Table 4
Total Income Tax after Credits, 1980-2006
($ Billions)
Year | Total | Top 1% | Top 2-5% | Top 5% | Top 6-10% | Top 10% | Top 11-25% | Top 25% | Top 26-50% | Top 50% | Bottom 50% |
1980 | 249 | $47 | $44 | $92 | $31 | $123 | $59 | $182 | $50 | $232 | $18 |
1981 | $282 | $50 | $49 | $99 | $36 | $135 | $69 | $204 | $57 | $261 | $21 |
1982 | $276 | $53 | $47 | $100 | $34 | $134 | $66 | $200 | $56 | $256 | $20 |
1983 | $272 | $55 | $46 | $101 | $34 | $135 | $64 | $199 | $54 | $252 | $19 |
1984 | $297 | $63 | $50 | $113 | $37 | $150 | $68 | $219 | $57 | $276 | $22 |
1985 | $322 | $70 | $55 | $125 | $41 | $166 | $73 | $238 | $60 | $299 | $23 |
1986 | $367 | $94 | $62 | $156 | $44 | $201 | $78 | $279 | $64 | $343 | $24 |
1987 | $369 | $92 | $68 | $160 | $46 | $205 | $79 | $284 | $63 | $347 | $22 |
1988 | $413 | $114 | $74 | $188 | $48 | $236 | $85 | $321 | $68 | $389 | $24 |
1989 | $433 | $109 | $81 | $190 | $51 | $241 | $93 | $334 | $73 | $408 | $25 |
1990 | $447 | $112 | $83 | $195 | $52 | $248 | $97 | $344 | $77 | $421 | $26 |
1991 | $448 | $111 | $83 | $194 | $56 | $250 | $96 | $347 | $77 | $424 | $25 |
1992 | $476 | $131 | $87 | $218 | $58 | $276 | $97 | $374 | $78 | $452 | $24 |
1993 | $503 | $146 | $92 | $238 | $60 | $298 | $101 | $399 | $80 | $479 | $24 |
1994 | $535 | $154 | $100 | $254 | $64 | $318 | $108 | $425 | $84 | $509 | $25 |
1995 | $588 | $178 | $110 | $288 | $70 | $357 | $115 | $473 | $88 | $561 | $27 |
1996 | $658 | $213 | $123 | $335 | $76 | $411 | $124 | $535 | $95 | $630 | $28 |
1997 | $727 | $241 | $136 | $377 | $82 | $460 | $134 | $594 | $102 | $696 | $31 |
1998 | $788 | $274 | $150 | $425 | $88 | $513 | $139 | $652 | $103 | $755 | $33 |
1999 | $877 | $317 | $169 | $486 | $97 | $583 | $150 | $733 | $109 | $842 | $35 |
2000 | $981 | $367 | $187 | $554 | $106 | $660 | $164 | $824 | $118 | $942 | $38 |
2001 | $888 | $301 | $172 | $473 | $103 | $576 | $160 | $736 | $117 | $853 | $35 |
2002 | $797 | $269 | $160 | $429 | $95 | $524 | $145 | $669 | $100 | $769 | $28 |
2003 | $748 | $256 | $150 | $407 | $86 | $492 | $135 | $627 | $95 | $722 | $26 |
2004 | $832 | $307 | $168 | $475 | $92 | $567 | $139 | $706 | $99 | $804 | $27 |
2005 | $935 | $368 | $190 | $558 | $99 | $657 | $147 | $804 | $102 | $906 | $29 |
2006 | $1,024 | $408 | $207 | $616 | $109 | $725 | $158 | $883 | $110 | $993 | $31 |
Source: Internal Revenue Service
Table 5
Adjusted Gross Income Shares, 1980-2006
(Percent of total AGI earned by each group)
Year | Total | Top 1% | Top 2-5% | Top 5% | Top 6-10% | Top 10% | Top 11-25% | Top 25% | Top 26-50% | Top 50% | Bottom 50% |
1980 | 100% | 8.46% | 12.55% | 21.01% | 11.12% | 32.13% | 24.57% | 56.70% | 25.62% | 82.32% | 17.6800% |
1981 | 100% | 8.30% | 12.48% | 20.78% | 11.20% | 31.98% | 24.69% | 56.67% | 25.58% | 82.25% | 17.7500% |
1982 | 100% | 8.91% | 12.32% | 21.23% | 11.03% | 32.26% | 24.53% | 56.79% | 25.50% | 82.29% | 17.7100% |
1983 | 100% | 9.29% | 12.45% | 21.74% | 11.04% | 32.78% | 24.44% | 57.22% | 25.30% | 82.52% | 17.4800% |
1984 | 100% | 9.66% | 12.53% | 22.19% | 11.06% | 33.25% | 24.31% | 57.56% | 25.00% | 82.56% | 17.4400% |
1985 | 100% | 10.03% | 12.64% | 22.67% | 11.10% | 33.77% | 24.20% | 57.97% | 24.77% | 82.74% | 17.2600% |
1986 | 100% | 11.30% | 12.81% | 24.11% | 11.01% | 35.12% | 23.92% | 59.04% | 24.30% | 83.34% | 16.6600% |
Tax Reform Act of 1986 changed the definition of AGI, so data above and below this line not strictly comparable | |||||||||||
1987 | 100% | 12.32% | 13.35% | 25.67% | 11.23% | 36.90% | 23.85% | 60.75% | 23.62% | 84.37% | 15.6300% |
1988 | 100% | 15.16% | 13.35% | 28.51% | 10.94% | 39.45% | 22.99% | 62.44% | 22.63% | 85.07% | 14.9300% |
1989 | 100% | 14.19% | 13.65% | 27.84% | 11.16% | 39.00% | 23.28% | 62.28% | 22.76% | 85.04% | 14.9600% |
1990 | 100% | 14.00% | 13.62% | 27.62% | 11.15% | 38.77% | 23.36% | 62.13% | 22.84% | 84.97% | 15.0300% |
1991 | 100% | 12.99% | 13.84% | 26.83% | 11.37% | 38.20% | 23.65% | 61.85% | 23.02% | 84.87% | 15.1300% |
1992 | 100% | 14.23% | 13.78% | 28.01% | 11.22% | 39.23% | 23.24% | 62.47% | 22.61% | 85.08% | 14.9200% |
1993 | 100% | 13.79% | 13.97% | 27.76% | 11.29% | 39.05% | 23.40% | 62.45% | 22.63% | 85.08% | 14.9200% |
1994 | 100% | 13.80% | 14.05% | 27.85% | 11.34% | 39.19% | 23.45% | 62.64% | 22.47% | 85.11% | 14.8900% |
1995 | 100% | 14.60% | 14.21% | 28.81% | 11.35% | 40.16% | 23.21% | 63.37% | 22.09% | 85.46% | 14.5400% |
1996 | 100% | 16.04% | 14.32% | 30.36% | 11.23% | 41.59% | 22.73% | 64.32% | 21.60% | 85.92% | 14.0800% |
1997 | 100% | 17.38% | 14.41% | 31.79% | 11.04% | 42.83% | 22.22% | 65.05% | 21.11% | 86.16% | 13.8400% |
1998 | 100% | 18.47% | 14.38% | 32.85% | 10.92% | 43.77% | 21.86% | 65.63% | 20.70% | 86.33% | 13.6700% |
1999 | 100% | 19.51% | 14.53% | 34.04% | 10.85% | 44.89% | 21.57% | 66.46% | 20.29% | 86.75% | 13.2500% |
2000 | 100% | 20.81% | 14.49% | 35.30% | 10.71% | 46.01% | 21.14% | 67.15% | 19.86% | 87.01% | 12.9900% |
2001 | 100% | 17.53% | 14.46% | 31.99% | 11.12% | 43.11% | 22.12% | 65.23% | 20.96% | 86.19% | 13.8100% |
2002 | 100% | 16.12% | 14.43% | 30.55% | 11.22% | 41.77% | 22.60% | 64.37% | 21.40% | 85.77% | 14.2300% |
2003 | 100% | 16.77% | 14.41% | 31.18% | 11.18% | 42.36% | 22.50% | 64.86% | 21.15% | 86.01% | 13.9900% |
2004 | 100% | 19.00% | 14.45% | 33.45% | 10.90% | 44.35% | 21.78% | 66.13% | 20.46% | 86.58% | 13.4156% |
2005 | 100% | 21.20% | 14.55% | 35.75% | 10.70% | 46.44% | 21.08% | 67.52% | 19.65% | 87.17% | 12.8282% |
2006 | 100% | 22.06% | 14.60% | 36.66% | 10.66% | 47.32% | 20.84% | 68.16% | 19.33% | 87.49% | 12.51% |
Source: Internal Revenue Service
Table 6
Total Income Tax Shares, 1980-2006
(Percent of federal income tax paid by each group)
Year | Total | Top 1% | Top 2-5% | Top 5% | Top 6-10% | Top 10% | Top 11-25% | Top 25% | Top 26-50% | Top 50% | Bottom 50% |
1980 | 100% | 19.05% | 17.79% | 36.84% | 12.44% | 49.28% | 23.74% | 73.02% | 19.93% | 92.95% | 7.0500% |
1981 | 100% | 17.58% | 17.48% | 35.06% | 12.90% | 47.96% | 24.33% | 72.29% | 20.26% | 92.55% | 7.4500% |
1982 | 100% | 19.03% | 17.10% | 36.13% | 12.46% | 48.59% | 23.91% | 72.50% | 20.15% | 92.65% | 7.3500% |
1983 | 100% | 20.32% | 16.94% | 37.26% | 12.45% | 49.71% | 23.39% | 73.10% | 19.73% | 92.83% | 7.1700% |
1984 | 100% | 21.12% | 16.86% | 37.98% | 12.58% | 50.56% | 22.93% | 73.49% | 19.16% | 92.65% | 7.3500% |
1985 | 100% | 21.81% | 16.97% | 38.78% | 12.68% | 51.46% | 22.60% | 74.06% | 18.77% | 92.83% | 7.1700% |
1986 | 100% | 25.75% | 16.82% | 42.57% | 12.12% | 54.69% | 21.33% | 76.02% | 17.52% | 93.54% | 6.4600% |
1987 | 100% | 24.81% | 18.45% | 43.26% | 12.35% | 55.61% | 21.31% | 76.92% | 17.01% | 93.93% | 6.0700% |
1988 | 100% | 27.58% | 18.04% | 45.62% | 11.66% | 57.28% | 20.56% | 77.84% | 16.44% | 94.28% | 5.7200% |
1989 | 100% | 25.24% | 18.70% | 43.94% | 11.84% | 55.78% | 21.44% | 77.22% | 16.95% | 94.17% | 5.8300% |
1990 | 100% | 25.13% | 18.51% | 43.64% | 11.72% | 55.36% | 21.66% | 77.02% | 17.17% | 94.19% | 5.8100% |
1991 | 100% | 24.82% | 18.56% | 43.38% | 12.44% | 55.82% | 21.47% | 77.29% | 17.23% | 94.52% | 5.4800% |
1992 | 100% | 27.54% | 18.34% | 45.88% | 12.13% | 58.01% | 20.47% | 78.48% | 16.46% | 94.94% | 5.0600% |
1993 | 100% | 29.01% | 18.35% | 47.36% | 11.88% | 59.24% | 20.03% | 79.27% | 15.92% | 95.19% | 4.8100% |
1994 | 100% | 28.86% | 18.66% | 47.52% | 11.93% | 59.45% | 20.10% | 79.55% | 15.68% | 95.23% | 4.7700% |
1995 | 100% | 30.26% | 18.65% | 48.91% | 11.84% | 60.75% | 19.61% | 80.36% | 15.03% | 95.39% | 4.6100% |
1996 | 100% | 32.31% | 18.66% | 50.97% | 11.54% | 62.51% | 18.81% | 81.32% | 14.36% | 95.68% | 4.3200% |
1997 | 100% | 33.17% | 18.70% | 51.87% | 11.33% | 63.20% | 18.47% | 81.67% | 14.05% | 95.72% | 4.2800% |
1998 | 100% | 34.75% | 19.09% | 53.84% | 11.20% | 65.04% | 17.65% | 82.69% | 13.10% | 95.79% | 4.2100% |
1999 | 100% | 36.18% | 19.27% | 55.45% | 11.00% | 66.45% | 17.09% | 83.54% | 12.46% | 96.00% | 4.0000% |
2000 | 100% | 37.42% | 19.05% | 56.47% | 10.86% | 67.33% | 16.68% | 84.01% | 12.08% | 96.09% | 3.9100% |
2001 | 100% | 33.89% | 19.36% | 53.25% | 11.64% | 64.89% | 18.01% | 82.90% | 13.13% | 96.03% | 3.9700% |
2002 | 100% | 33.71% | 20.09% | 53.80% | 11.93% | 65.73% | 18.17% | 83.90% | 12.60% | 96.50% | 3.5000% |
2003 | 100% | 34.27% | 20.09% | 54.36% | 11.48% | 65.84% | 18.04% | 83.88% | 12.66% | 96.54% | 3.4600% |
2004 | 100% | 36.89% | 20.23% | 57.13% | 11.07% | 68.19% | 16.67% | 84.86% | 11.85% | 96.70% | 3.2960% |
2005 | 100% | 39.38% | 20.29% | 59.67% | 10.63% | 70.30% | 15.69% | 85.99% | 10.94% | 96.93% | 3.0678% |
2006 | 100% | 39.89% | 20.25% | 60.14% | 10.65% | 70.79% | 15.47% | 86.27% | 10.75% | 97.01% | 2.99% |
Source: Internal Revenue Service
Table 7
Dollar Cut-Off, 1980-2006
(Minimum AGI for tax return to fall into various percentiles)
Year | Total | Top 1% | Top 5% | Top 10% | Top 25% | Top 50% |
1980 | 0 | $80,580 | $43,792 | $35,070 | $23,606 | $12,936 |
1981 | 0 | $85,428 | $47,845 | $38,283 | $25,655 | $14,000 |
1982 | 0 | $89,388 | $49,284 | $39,676 | $27,027 | $14,539 |
1983 | 0 | $93,512 | $51,553 | $41,222 | $27,827 | $15,044 |
1984 | 0 | $100,889 | $55,423 | $43,956 | $29,360 | $15,998 |
1985 | 0 | $108,134 | $58,883 | $46,322 | $30,928 | $16,688 |
1986 | 0 | $118,818 | $62,377 | $48,656 | $32,242 | $17,302 |
Tax Reform Act of 1986 changed the definition of AGI, so data above and below this line not strictly comparable | ||||||
1987 | 0 | $139,289 | $68,414 | $52,921 | $33,983 | $17,768 |
1988 | 0 | $157,136 | $72,735 | $55,437 | $35,398 | $18,367 |
1989 | 0 | $163,869 | $76,933 | $58,263 | $36,839 | $18,993 |
1990 | 0 | $167,421 | $79,064 | $60,287 | $38,080 | $19,767 |
1991 | 0 | $170,139 | $81,720 | $61,944 | $38,929 | $20,097 |
1992 | 0 | $181,904 | $85,103 | $64,457 | $40,378 | $20,803 |
1993 | 0 | $185,715 | $87,386 | $66,077 | $41,210 | $21,179 |
1994 | 0 | $195,726 | $91,226 | $68,753 | $42,742 | $21,802 |
1995 | 0 | $209,406 | $96,221 | $72,094 | $44,207 | $22,344 |
1996 | 0 | $227,546 | $101,141 | $74,986 | $45,757 | $23,174 |
1997 | 0 | $250,736 | $108,048 | $79,212 | $48,173 | $24,393 |
1998 | 0 | $269,496 | $114,729 | $83,220 | $50,607 | $25,491 |
1999 | 0 | $293,415 | $120,846 | $87,682 | $52,965 | $26,415 |
2000 | 0 | $313,469 | $128,336 | $92,144 | $55,225 | $27,682 |
2001 | 0 | $292,913 | $127,904 | $92,754 | $56,085 | $28,528 |
2002 | 0 | $285,424 | $126,525 | $92,663 | $56,401 | $28,654 |
2003 | 0 | $295,495 | $130,080 | $94,891 | $57,343 | $29,019 |
2004 | 0 | $328,049 | $137,056 | $99,112 | $60,041 | $30,122 |
2005 | 0 | $364,657 | $145,283 | $103,912 | $62,068 | $30,881 |
2006 | 0 | $388,806 | $153,542 | $108,904 | $64,702 | $31,987 |
Source: Internal Revenue Service
Table 8
Average Tax Rate, 1980-2006
(Percentage of AGI paid in income taxes)
Year | Total | Top 1% | Top 2-5% | Top 5% | Top 6-10% | Top 10% | Top 11-25% | Top 25% | Top 26-50% | Top 50% | Bottom 50% |
1980 | 15.31% | 34.47% | 21.71% | 26.85% | 17.13% | 23.49% | 14.80% | 19.72% | 11.91% | 17.29% | 6.10% |
1981 | 15.76% | 33.37% | 22.08% | 26.59% | 18.16% | 23.64% | 15.53% | 20.11% | 12.48% | 17.73% | 6.62% |
1982 | 14.72% | 31.43% | 20.44% | 25.05% | 16.61% | 22.17% | 14.35% | 18.79% | 11.63% | 16.57% | 6.10% |
1983 | 13.79% | 30.18% | 18.77% | 23.64% | 15.54% | 20.91% | 13.20% | 17.62% | 10.76% | 15.52% | 5.66% |
1984 | 13.68% | 29.92% | 18.41% | 23.42% | 15.57% | 20.81% | 12.90% | 17.47% | 10.48% | 15.35% | 5.77% |
1985 | 13.73% | 29.86% | 18.44% | 23.50% | 15.69% | 20.93% | 12.83% | 17.55% | 10.41% | 15.41% | 5.70% |
1986 | 14.54% | 33.13% | 19.10% | 25.68% | 15.99% | 22.64% | 12.97% | 18.72% | 10.48% | 16.32% | 5.63% |
Tax Reform Act of 1986 changed the definition of AGI, so data above and below this line not strictly comparable | |||||||||||
1987 | 13.12% | 26.41% | 18.13% | 22.10% | 14.43% | 19.77% | 11.71% | 16.61% | 9.45% | 14.60% | 5.09% |
1988 | 13.21% | 24.04% | 17.85% | 21.14% | 14.07% | 19.18% | 11.82% | 16.47% | 9.60% | 14.64% | 5.06% |
1989 | 13.12% | 23.34% | 17.97% | 20.71% | 13.93% | 18.77% | 12.08% | 16.27% | 9.77% | 14.53% | 5.11% |
1990 | 12.95% | 23.25% | 17.60% | 20.46% | 13.63% | 18.50% | 12.01% | 16.06% | 9.73% | 14.36% | 5.01% |
1991 | 12.75% | 24.37% | 17.10% | 20.62% | 13.96% | 18.63% | 11.57% | 15.93% | 9.55% | 14.20% | 4.62% |
1992 | 12.94% | 25.05% | 17.21% | 21.19% | 13.99% | 19.13% | 11.39% | 16.25% | 9.42% | 14.44% | 4.39% |
1993 | 13.32% | 28.01% | 17.48% | 22.71% | 14.01% | 20.20% | 11.40% | 16.90% | 9.37% | 14.90% | 4.29% |
1994 | 13.50% | 28.23% | 17.93% | 23.04% | 14.20% | 20.48% | 11.57% | 17.15% | 9.42% | 15.11% | 4.32% |
1995 | 13.86% | 28.73% | 18.19% | 23.53% | 14.46% | 20.97% | 11.71% | 17.58% | 9.43% | 15.47% | 4.39% |
1996 | 14.34% | 28.87% | 18.68% | 24.07% | 14.74% | 21.55% | 11.86% | 18.12% | 9.53% | 15.96% | 4.40% |
1997 | 14.48% | 27.64% | 18.78% | 23.62% | 14.87% | 21.36% | 12.04% | 18.18% | 9.63% | 16.09% | 4.48% |
1998 | 14.42% | 27.12% | 19.14% | 23.63% | 14.79% | 21.42% | 11.63% | 18.16% | 9.12% | 16.00% | 4.44% |
1999 | 14.85% | 27.53% | 19.68% | 24.18% | 15.06% | 21.98% | 11.76% | 18.66% | 9.12% | 16.43% | 4.48% |
2000 | 15.26% | 27.45% | 20.07% | 24.42% | 15.48% | 22.34% | 12.04% | 19.09% | 9.28% | 16.86% | 4.60% |
2001 | 14.23% | 27.50% | 19.12% | 23.68% | 14.89% | 21.41% | 11.58% | 18.08% | 8.91% | 15.85% | 4.09% |
2002 | 13.03% | 27.25% | 18.15% | 22.95% | 13.87% | 20.51% | 10.47% | 16.99% | 7.67% | 14.66% | 3.21% |
2003 | 11.90% | 24.31% | 16.58% | 20.74% | 12.22% | 18.49% | 9.54% | 15.38% | 7.12% | 13.35% | 2.95% |
2004 | 12.10% | 23.49% | 16.95% | 20.67% | 12.28% | 18.60% | 9.26% | 15.53% | 7.01% | 13.51% | 2.97% |
2005 | 12.45% | 23.13% | 17.36% | 20.78% | 12.37% | 18.84% | 9.27% | 15.86% | 6.93% | 13.84% | 2.98% |
2006 | 12.60% | 22.79% | 17.48% | 20.68% | 12.60% | 18.86% | 9.36% | 15.95% | 7.01% | 13.98% | 3.01% |
Source: Internal Revenue Service
(1) All tax returns that have a positive AGI are included, even those that do not have a positive income tax liability.
(2) Income tax after credits (the tax measure above) does not account for the refundable portion of EITC. If it were included (as is often the case with other organizations), the tax share of the top income groups would be higher. The refundable portion is legally classified as a spending program by the Office of Management and Budget and therefore is not included by the IRS in these figures.
(3) The only tax analyzed here is the federal individual income tax, which is responsible for about 25 percent of the nation's taxes paid (at all levels of government). Federal income taxes are much more progressive than 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 (depending upon the economic assumption made about property taxes and corporate income taxes).
(4) As any public finance economist would tell you, AGI is a fairly narrow income concept (too narrow according to most experts), as it does not include certain 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, taxes paid on corporate income and those indirectly paid by businesses, employer contributions for Social Security and Medicare taxes, net imputed rental income, worker's compensation benefits and others.
(5) Tax return is the unit of analysis, which is broader than households, especially for those at the bottom end, many of which are dependent returns. Some dependent returns are included in the figures here, and under other units of analysis (like Treasury's Family Economic Unit), would likely be paired with their parents' returns. Also worth noting is that by using tax returns as the unit of analysis, single tax units are being compared with married units when analyzing the income share and tax share of various groups. The top income groups are much more likely to be married due to the mere fact that married couples often have two wages. While CBO makes an attempt to adjust for this by dividing a household's income by the square root of the household's size, the data in these tables makes no such adjustment.
(6) The source data is the IRS Statistics of Income Division, which uses a national sample of tax returns to provide the figures used here. The figures above were taken from data that was labeled an "early release" by SOI in July 2008, and may be revised in subsequent months.
NOTE: This page is adapted from Summary of Latest Federal Individual Income Tax Data by Gerald Prante. It is basically the tables with the analysis stripped out. I did this because a very intelligent friend of mine completely misinterpreted the analysis, coming the near opposite conclusion of reality, which suggests some of the analysis is, probably unintentionally, misleading. These are government data.