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Summary of Federal Income Tax Data, 2010
Number of Federal Individual Income Tax Returns Filed 1980-2010 (In thousands)
Adjusted Gross Income of Taxpayers in Various Income Brackets, 1980-2010 ($Billions)
Total Income Tax after Credits, 1980-2010 ($ Billions)
Adjusted Gross Income Shares, 1980-2010 (Percent of total AGI earned by each group)
Total Income Tax Shares, 1980-2010 (Percent of federal income tax paid by each group)
Dollar Cut-Off, 1980-2010 (Minimum AGI for tax return to fall into various percentiles; thresholds not adjusted for inflation)
Average Tax Rate, 1980-2010 (Percent of AGI paid in income taxes)
The Internal Revenue Service has released new data on individual income taxes, reporting on calendar year 2010.[1] As we do every year, we present a summary of that data along with the historical data back to 1980. This year the IRS changed its methodology to exclude dependent filers and include returns with negative AGI. For comparison’s sake, we present this new data as far back as the IRS provides, to 2001, along with the previously reported data for prior years. Here follows the IRS statement regarding this year’s change:
This release including the Tax Year 2010 percentile data were [sic] produced using an improved methodology to that of previous SOI releases of percentile data in order to refine the accuracy of the percentile estimates. The data in these tables are based on a modified universe of tax returns. In particular, all individual income tax returns except returns of dependents are now used in the computation whereas previous releases were based on only returns with positive AGI. This change was the result of feedback and recommendations made by users of these statistics who encouraged SOI to assess the utility of the information. The data in the improved tables shown here, while more accurate for the dollar amounts shown are still very similar in terms of percentages when compared to the data produced under the previous methodology.[2]
The new methodology results in about 7 to 9 million fewer tax returns in most years but about 5 million fewer returns in 2009 due to the high number of negative AGI returns that year. It also results in a slight overstatement of both the income shares and the average tax rates of the top 1 percent and a slight understatement of the tax shares of the top 1 percent, as compared with the previous methodology.[3]
With that in mind, a few points about the data can be made. First, as a result of the tepid economic recovery, incomes and taxes paid for all income groups increased in 2010 but not to the levels achieved during the boom years of 2006 and 2007.
Second, average tax rates increased in 2010 for all except the top 1 percent, who saw a slight decrease in their average tax rate from 24.05 percent of income in 2009 to 23.39 percent in 2010. This is still about 10 times the tax rate of the bottom 50 percent of filers, who paid 2.37 percent of their income in 2010. Tax rates have dropped for all filers since 2001 but have done so most precipitously for low-income filers. The bottom 50 percent of filers paid 4.92 percent of their income in 2001, more than twice the rate they paid in 2010. In contrast, the top 1 percent of filers paid 27.6 percent of their income in 2001, which is about 4 points higher than their 2010 rate.
Finally, as many have noted, incomes have stagnated for low-income households in recent years, but this is true for high-income households as well.[4] In real inflation-adjusted terms, the income thresholds for all percentiles, including the top 50 percent, the top 1 percent, and the top 0.1 percent are lower than they were in 2001 (not shown). That means the nominal income increases since 2001, shown in Table 7, are entirely due to inflation. In terms of income shares, there has been more growth of income at the top, at least since 2001. The income share of the top 1 percent rebounded slightly to 18.87 percent of income in 2010 after bottoming out in 2009. However, the top share remains lower than it was at any time during the economic expansion of 2004 to 2008.
Table 1. Summary of Federal Income Tax Data, 2010
|
| |
Number of Returns*
|
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
|
135,033,492
|
$8,039,779
|
$949,144
|
100.0%
|
100.0%
|
-
|
11.81%
|
|
Top 1%
|
1,350,335
|
$1,517,146
|
$354,810
|
18.9%
|
37.4%
|
$369,691
|
23.39%
|
|
1-5%
|
5,401,340
|
$1,199,053
|
$205,839
|
14.9%
|
21.7%
|
|
17.17%
|
|
Top 5%
|
6,751,675
|
$2,716,199
|
$560,649
|
33.8%
|
59.1%
|
$161,579
|
20.64%
|
|
5-10%
|
6,751,674
|
$915,165
|
$109,670
|
11.4%
|
11.6%
|
|
11.98%
|
|
Top 10%
|
13,503,349
|
$3,631,364
|
$670,319
|
45.2%
|
70.6%
|
$116,623
|
18.46%
|
|
10-25%
|
20,255,024
|
$1,799,588
|
$156,477
|
22.4%
|
16.5%
|
|
8.70%
|
|
Top 25%
|
33,758,373
|
$5,430,952
|
$826,796
|
67.6%
|
87.1%
|
$69,126
|
15.22%
|
|
25-50%
|
33,758,373
|
$1,664,728
|
$99,986
|
20.7%
|
10.5%
|
|
6.01%
|
|
Top 50%
|
67,516,746
|
$7,095,680
|
$926,782
|
88.3%
|
97.6%
|
$34,338
|
13.06%
|
|
Bottom 50%
|
67,516,746
|
$944,099
|
$22,363
|
11.7%
|
2.4%
|
<$34,338
|
2.37%
|
|
Source: Internal Revenue Service
*Does not include dependent filers.
|
Table 2. Number of Federal Individual Income Tax Returns Filed 1980-2010 (In thousands)
|
|
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
|
93,239
|
|
932
|
4,662
|
4,662
|
9,324
|
13,986
|
23,310
|
23,310
|
46,619
|
46,619
|
|
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
|
|
Tax Reform Act of 1986 changed the definition of AGI, so data above and below this line 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
|
|
IRS changed methodology, so data above and below this line 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
|
|
Source: Internal Revenue Service
|
Table 3. Adjusted Gross Income of Taxpayers in Various Income Brackets, 1980-2010 ($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
|
|
Tax Reform Act of 1986 changed the definition of AGI, so data above and below this line 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
|
|
IRS changed methodology, so data above and below this line 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
|
$944
|
|
Source: IRS
|
Table 4. Total Income Tax after Credits, 1980-2010 ($ 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
|
|
Tax Reform Act of 1986 changed the definition of AGI, so data above and below this line 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
|
|
IRS changed methodology, so data above and below this line 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
|
|
Source: IRS
|
Table 5. Adjusted Gross Income Shares, 1980-2010 (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%
|
|
Tax Reform Act of 1986 changed the definition of AGI, so data above and below this line 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%
|
|
IRS changed methodology, so data above and below this line 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%
|
|
Source: IRS
|
Table 6. Total Income Tax Shares, 1980-2010 (Percent of federal income tax paid 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%
|
|
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%
|
|
Tax Reform Act of 1986 changed the definition of AGI, so data above and below this line 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%
|
|
IRS changed methodology, so data above and below this line 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%
|
|
Source: IRS
|
Table 7. Dollar Cut-Off, 1980-2010
(Minimum AGI for tax return 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
|
|
Tax Reform Act of 1986 changed the definition of AGI, so data above and below this line 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
|
|
IRS changed methodology, so data above and below this line 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
|
|
Source: IRS
|
Table 8. Average Tax Rate, 1980-2010 (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%
|
|
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%
|
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%
|
|
IRS changed methodology, so data above and below this line 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%
|
|
Source: IRS
|
Some important facts to keep in mind about the information provided here.
(1) 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.
(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) 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, 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 (prior to 2001). Some dependent returns are included in the figures here prior to 2001, and under other units of analysis (like the Treasury Department's Family Economic Unit) would likely be paired with their parents' returns.
(6) The data source is the IRS Statistics of Income Division, which uses a national sample of tax returns to provide the figures used here. The figures above for 2010 were taken from data that were labeled an "early release" by SOI in November 2012. The 2009 figures and those for previous years on this page were taken from the final percentile data released by the IRS. Figures for 2010 may be subsequently revised.
(7) These figures represent the legal incidence of the income tax, although most distributional tables (such as those from CBO, Tax Policy Center, Citizens for Tax Justice, Treasury, and JCT) assume that the entire economic incidence of personal income taxes falls on the income earner.
[1] Internal Revenue Service, SOI Stats – Individual Statistical Tables by Tax Rate and Income Percentile, http://www.irs.gov/uac/SOI-Tax-Stats-Individual-Statistical-Tables-by-Tax-Rate-and-Income-Percentile.
[2] Id.
[3] David Logan, Summary of Latest Federal Income Tax Data, Tax Foundation Fiscal Fact No. 285 (Oct. 24, 2011), http://taxfoundation.org/article/summary-latest-federal-individual-income-tax-data-0. For a more directly comparable time series of data across decades going back to 1979, see the CBO’s report, discussed in William McBride, CBO Report Shows Increasing Redistribution in the Tax Code Despite No Long-Term Trend in Income Inequality, Tax Foundation Fiscal Fact No. 322 (July 24, 2012), http://taxfoundation.org/article/cbo-report-shows-increasing-redistribution-tax-code-despite-no-long-term-trend-income-inequality.
[4] Bruce Bartlett, Tax Cuts, Tax Rates and Tax Shares, New York Times Economix Blog, Nov. 27, 2012, http://economix.blogs.nytimes.com/2012/11/27/tax-cuts-tax-rates-and-tax-shares/.
