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Income Taxes

The U.S. federal individual income tax was enacted in 1913 following the passage of the 16th Amendment. Today, most states and a small number of local and municipal governments also collect income taxes. Income taxes today provide the largest single source of federal revenues, some $1 trillion in 2006. Click here for the Tax Foundation's latest summary of federal individual income tax data.

Additional questions about the income tax? Contact us at (202) 464-6200.

Articles from the Tax Foundation

Testimony to Vermont Blue Ribbon Tax Structure Commission: Options for Improving Vermont’s Tax Competitiveness, by William Ahern, November 17, 2009
Map: Top Effective Marginal Tax Rates Under House Health Care Plan, November 16, 2009
Baucus beats Pelosi on health tax policy, by William Ahern, November 6, 2009
Those Hit by Health Care Surtax Would Pay 36% of Federal Income Taxes, November 5, 2009
New House Health Care Plan Funded By Income Surtax, Medicare Cuts, October 30, 2009
How the Pelosi and Baucus Health Care Reform Bills Are Financed, October 30, 2009
Comparing Financing of the House and Senate Health Care Reform Plans, by Gerald Prante, October 30, 2009
Can Income Tax Hikes Close the Deficit?, by William Ahern, October 22, 2009
To Close the Deficit, Federal Income Tax Rates Would Have to Nearly Triple, October 22, 2009
New Report Compares State and Local Government Tax Revenue Sources, October 9, 2009
Where Do State and Local Governments Get Their Tax Revenue?, by Gerald Prante, October 9, 2009
Distributional Effects of the House of Representatives’ Health Care Reform Bill, by Scott A. Hodge, October 6, 2009
Oh, give me a home without a subsidized loan, by Patrick Fleenor, October 2, 2009
State Business Tax Climate Index--Individual Income Tax Index, 2010 , September 22, 2009
Slide Show: Redistribution and the Impact of Obama's Policies, September 21, 2009
Under Obama's Policies, Most Families Earning up to $109,000 Will Get More Back from Government Benefits Than They Pay in Taxes, September 21, 2009
How Much Does President Obama’s Budget Redistribute Income?, by Patrick Fleenor and Gerald Prante, September 21, 2009
Basic Facts on Redistribution and the Impact of Obama’s Policies, by Scott A. Hodge, September 21, 2009
Accounting for What Families Pay in Taxes and What They Receive in Government Spending, by Scott A. Hodge, September 21, 2009
Fergus Cullen of the Yankee Institute for Public Policy: Connecticut Budget, September 16, 2009
Inflation Adjustment of Tax Brackets Almost Zero for Next Year, by Mark Robyn and Gerald Prante, September 16, 2009
Towards Understanding the Full Burden of High Tax Rates, by Robert Carroll, August 14, 2009
The Excess Burden of Taxes and the Economic Cost of High Tax Rates, by Robert Carroll, August 14, 2009
Outline of Individual and Employer Coverage under House Health Care Reform Bill, by Gerald Prante, August 12, 2009
Summary of Latest Federal Individual Income Tax Data, 1980 - 2007, July 30, 2009
Summary of Latest Federal Individual Income Tax Data, by Gerald Prante, July 30, 2009
Graph: Tax Burden of Top 1% Now Exceeds That of Bottom 95%, July 29, 2009
The Economic Cost of High Tax Rates, by Robert Carroll, July 29, 2009
Christian Science Monitor Story Features Tax Foundation Report on Income Redistribution, July 21, 2009
ABCNews.com Article Highlights Tax Foundation Report on Health Care Surtax, July 20, 2009
Los Angeles Times Columnist Tom Petruno Interviews Tax Foundation President Scott Hodge on House Health Care Surtax Plan, July 18, 2009
New Surtax and Expiring Tax Cuts Could Hit Business Income Simultaneously, by Scott A. Hodge, July 17, 2009
ABC News Senior White House Correspondent Jake Tapper Cites Tax Foundation President Scott Hodge, July 16, 2009
Past Sotomayor Opinions Not Encouraging for Opponents of State Tax Overreaching, by Travis Greaves and Joseph Henchman, July 14, 2009
States Begin New Fiscal Year Following Many Tax Changes, July 13, 2009
Some States Respond to Budget Shortfalls with Tax Increases, by Mark Robyn and Kail Padgitt, July 13, 2009
If Health Surtax Is 3 Percent, Taxpayers in 24 States Would Pay a Top Tax Rate Over 50% , by TF Staff, July 13, 2009
Gerald Prante of the Tax Foundation: Income Redistribution Under President Obama, July 9, 2009
State Individual Income Tax Rates, 2000-2009, July 1, 2009
How Much Does President Obama’s Budget Redistribute Income?, by Patrick Fleenor and Gerald Prante, June 25, 2009
The Pine Tree State Chops Down Income Tax: Maine Enacts Major Tax Reform, by Kail Padgitt, June 23, 2009
Jamie Story of the Grassroot Institute of Hawaii: Tax Hikes in the Aloha State, June 3, 2009
A Golden Opportunity: California’s Budget Crisis Offers a Chance to Fix a Broken Tax System, by Joseph Henchman, May 18, 2009
What is Tax Deferral? New Tax Foundation Video Aims to Educate Public About Critical Issue Involving America’s Global Economic Competitiveness, May 13, 2009
Ending Tax Deferral Would Unduly Penalize American Businesses, May 13, 2009
The Price of Paradise: Hawaii Becomes Fifth State to Adopt New Income Tax Brackets on High-Earners, by Joseph Henchman and Mark Robyn, May 12, 2009
Ari Fleischer: Reforming the Tax Code to Promote Economic Growth, Not Wealth Redistribution, April 15, 2009
Congressman Tom Price (R-GA): Obama Budget vs. GOP Alternative, April 8, 2009
Kristina Rasmussen of the Illinois Policy Institute: Gov. Quinn's Tax Increase Proposal, April 1, 2009
Proposed Tax on AIG Bonuses Raises Constitutional and Policy Concerns, by Joseph Henchman, March 27, 2009
David Harsanyi of the Denver Post: The Politics of Taxes and Fiscal Policy in Colorado, March 18, 2009
Robert Carroll of the Tax Foundation and Diane Lim Rogers of the Concord Coalition: Moving Forward with Bipartisan Tax Policy Reform, March 11, 2009
Congressman Paul Ryan (R-WI): Tax, Monetary and Entitlement Policy Reform, March 4, 2009
Update: The Tax Savings from Final Fiscal Stimulus, by Mark Robyn, February 23, 2009
Update: The Tax Savings from Fiscal Stimulus , by Mark Robyn, February 13, 2009
Moving Forward with Bipartisan Tax Policy, by Robert Carroll, John E. Chapoton, Maya MacGuineas and Diane Lim Rogers, February 12, 2009
The Tax Savings from Fiscal Stimulus , by Robert Carroll and Mark Robyn, February 6, 2009
State and Local Individual Income Tax Collections Per Capita and Per Household, Fiscal Year 2004-2006 , February 5, 2009
Income Per Capita by State, Fiscal Year 2008 , February 5, 2009
State Individual Income Tax Collections Per Capita, Fiscal Year 2007 , February 5, 2009
U.S. Federal Individual Income Tax Rates History, 1913-2009, January 2, 2009
Transit Agencies in Bind Due to SILO Deals and AIG Collapse, by Joseph Henchman, October 30, 2008
The Effect of the Presidential Candidates' Tax Plans on Flow-Through Businesses, by Robert Carroll, October 23, 2008
North Dakota's Measure 2: How Would Rate Cuts Affect the Peace Garden State's Competitiveness?, by Joseph Henchman, October 17, 2008
How Do the Presidential Candidates' Tax Plans Affect Taxpayers' Marginal Tax Rates?, by Robert Carroll, October 6, 2008
Both Candidates' Tax Plans Will Reduce Millions of Taxpayers' Liability to Zero (or Less), by Scott A. Hodge, September 19, 2008
McCain's Health Credit: The Intersection of Health Policy and Tax Policy, by Robert Carroll, September 16, 2008
Obama's Income Tax Cliff for Senior Citizens, by Mark Robyn, August 22, 2008
How Much Federal Income Tax Do High-Income Taxpayers in Each State Pay?, August 1, 2008
Summary of Federal Individual Income Tax Data by State, 2006 , August 1, 2008
Local Wage, Income, and Occupational Privilege Taxes, 2008, July 15, 2008
California Legislators Push for More Double-Digit Income Tax Rates, by William Ahern, July 14, 2008
County and City Income Taxes Clustered in States with Poor Tax Climates, by Joseph Henchman, July 11, 2008
Hard Numbers on Obama?s Redistribution Plan, by Scott A. Hodge, June 25, 2008
The Presidential Election Campaign Fund: A Voluntary Tax That Stirs Little Enthusiasm, by Mark Robyn, June 20, 2008
Number of Paying and Non-Paying Tax Returns by Type of Return, 2005, June 2, 2008
Case Presents Opportunity to Ensure Uniform Application of Tax Code and Prevent Harm to Taxpayers, by Joseph Henchman and Matthew Reddington, April 28, 2008
Tax: Fundamentals in Advance of Reform (Testimony of Robert J. Carroll Before the Senate Committee on Finance), by Robert Carroll, April 15, 2008
Maryland Flouts Regional Tax Competition with Historic Tax Hike, by William Ahern, April 9, 2008
More Bad Ideas for Housing Tax Credits, by Gerald Prante, April 3, 2008
Protecting Taxpayers from Fragmented State-by-State Interpretations of the Federal Tax Code -- Centerior Energy Corp. v. Mikulski, by Joseph Henchman and Erik S. Jaffe, February 22, 2008
Links to State Individual Income Tax Forms, February 15, 2008
Nina Olson on Protecting Taxpayers? Rights, January 31, 2008
Tax Foundation Comments on Proposed Stimulus Deal, by Nate Bailey, January 29, 2008
The Distributional Effects of Fiscal Stimulus, by TF Staff, January 24, 2008
Tax Revenue and Distributional Effects of Lowering 10% Bracket to Zero for 2008, by Gerald Prante and Patrick Fleenor, January 18, 2008
AMT Patch Finally Receives Congressional Approval, Sparing Taxpayers Higher Taxes and Delayed Refunds, December 19, 2007
Buffett?s Facts Are Wrong: Top 1% Now Paying Record Level of Taxes, by Scott A. Hodge, December 13, 2007
Hypothetical Examples of Families Affected by the AMT Patch, by Gerald Prante, December 12, 2007
Defending Competitive Neutrality Before the Supreme Court, by Joseph Henchman, November 30, 2007
Effects of Allowing Filers the Option of Filing Under an Optional 24 Percent Flat Tax, by Patrick Fleenor, November 9, 2007
Effects of Allowing Filers the Option of Filing Under an Optional 23 Percent Flat Tax, by Patrick Fleenor, November 9, 2007
Effects of Allowing Filers the Option of Filing Under an Optional 22 Percent Flat Tax, by Patrick Fleenor, November 9, 2007
Effects of Allowing Filers the Option of Filing Under an Optional 21 Percent Flat Tax, by Patrick Fleenor, November 9, 2007
Effects of Allowing Filers the Option of Filing Under an Optional 20 Percent Flat Tax, by Patrick Fleenor, November 9, 2007
Rangel?s ?Mother of All Tax Reforms? Bill Overshadows Much Bigger Question: What to Do in 2011?, by Gerald Prante, October 26, 2007
Inflation Adjustments for Tax Brackets Will Be Significantly Smaller in 2008 than in 2007, by Gerald Prante, October 8, 2007
Impact of the Alternative Minimum Tax (AMT) by County, 2005, September 24, 2007
Impact of the Alternative Minimum Tax (AMT) by Major City Areas, 2005 , September 24, 2007
Impact of the Alternative Minimum Tax (AMT) by Congressional District, 2005 , September 24, 2007
Q&A on the Carried Interest Debate, by TF Staff, September 7, 2007
Tax Reform: Flat Tax or FairTax?, by Scott A. Hodge, August 20, 2007
Itemization Rates by State, 2005, July 24, 2007
Most Americans Don?t Itemize on Their Tax Returns, by Gerald Prante, July 23, 2007
Questions and Answers on the Alternative Minimum Tax, by Gerald Prante, July 21, 2007
Impact of the Alternative Minimum Tax (AMT) by State, 2005 , July 18, 2007
Dividends and Capital Gains Income Compared to Other Income by State, 2005, July 16, 2007
As Presidential Candidates Target Investment Income for Higher Taxes, Which States Stand to Lose the Most?, by Gerald Prante, July 16, 2007
In OECD Comparison of Wage Taxes, U.S. Ranking Would Slip Badly if 2001 Tax Cuts Expired, by Chris Atkins, July 9, 2007
A Progressive AMT Fix Without Higher Tax Rates, by Gerald Prante, June 27, 2007
Comparing Popular Tax Deductions to the Bush Tax Cuts, by Gerald Prante, June 21, 2007
AMT Taxpayers Have Benefited Greatly from Bush Tax Cuts, by Gerald Prante, May 31, 2007
Impact of Bush Tax Cuts on AMT and Non-AMT Returns for 2007 Under Current Law, May 31, 2007
Fixing the Alternative Minimum Tax, by Patrick Fleenor, May 17, 2007
Testimony of Scott A. Hodge Before the Senate Committee on Finance, May 10, 2007
Fraction of Each Quintile's Total Tax Burden Accounted for by Each Type of Tax, Calendar Year 2004 , April 1, 2007
Average Dollar Tax Burdens by Type of Federal Tax, Per Household, Calendar Year 2004 , April 1, 2007
Putting Taxes on the Map: Federal Tax Burdens by City, County, Congressional District and State, by Andrew Chamberlain and Gerald Prante, March 22, 2007
History of Alternative Minimum Tax (AMT) Returns and Liabilities, 1970-2005, February 22, 2007
Married Couples with Children No Longer in Statistical "Middle Class", by Scott A. Hodge, January 29, 2007
Illustration of the President?s Health Care Tax Initiative, by Gerald Prante, January 25, 2007
President to Propose Large Tax Deduction to Spur Health Insurance Purchases, by Gerald Prante, January 22, 2007
Federal Individual Income Tax Burden by County, 2004, January 17, 2007
IRS Data Reveal Which Congressional Districts Pay the Highest Federal Income Taxes, by Gerald Prante, January 17, 2007
Federal Individual Income Tax Burden by Major City Area, 2004, January 17, 2007
Federal Individual Income Tax Burden by Congressional District, 2004, January 17, 2007
IRS Data Reveal Some Congressional Districts Hit Harder by Alternative Minimum Tax (AMT) than Others, by Andrew Chamberlain and Gerald Prante, January 9, 2007
Issues in the Indexation of Capital Gains, by Curtis S. Dubay, November 22, 2006
Double-Taxing Capital Income: How Bad Is the Problem?, by Patrick Fleenor, November 16, 2006
New IRS Data: Tax Code More Progressive in 2004 than in 2000, by Gerald Prante, October 17, 2006
Increase in Child Tax Credit Sends Families with Many Children off the Tax Rolls, by Gerald Prante, October 10, 2006
IRS Data Reveal Which States Benefited Most from 2001 and 2003 Tax Cuts, by Gerald Prante, October 4, 2006
New IRS Data Show All Income Groups Have Seen Tax Liabilities Fall Since 2000, by Gerald Prante, September 20, 2006
Growing Amount of Business Income Taxed by the Individual Income Tax Code, by Gerald Prante and Jonathan Williams, May 8, 2006
Number of Americans Paying Zero Federal Income Tax Grows to 43.4 Million, by Scott A. Hodge, March 30, 2006
Majority of Taxpayers Affected by AMT Also Claim Capital Gains or Dividend Income, by Gerald Prante, February 26, 2006
The Rising Cost of Complying with the Federal Income Tax, by Scott A. Hodge, J. Scott Moody and Wendy P. Warcholik, Ph.D., January 10, 2006
Taxable Dividend Income by State, 2000, 2003, December 7, 2005
Majority of Seniors Benefit from Reduced Capital Gains and Dividend Tax Rates, by Scott A. Hodge, December 6, 2005
Charities and Public Goods: The Case for Reforming the Federal Income Tax Deduction for Charitable Gifts, by Andrew Chamberlain and Mark Sussman, November 23, 2005
Taxing More, Taking Less: How Broadening the Federal Tax Base Can Reduce Income Tax Rates, by Patrick Fleenor, October 31, 2005
America's Shrinking Income Tax Base Requires Higher Rates for Everyone, by Patrick Fleenor and Andrew Chamberlain, September 21, 2005
Number of Americans Outside the Income Tax System Continues to Grow, by Scott A. Hodge, June 9, 2005
Backgrounder on the Individual Alternative Minimum Tax (AMT), by Patrick Fleenor and Andrew Chamberlain, May 24, 2005
CBO Forecast Shows Runaway Spending?Not Tax Cuts?Causing Deficits, by Scott A. Hodge, January 26, 2005
1913 Internal Revenue Service 1040 Form, January 1, 2005
Dates of Adoption of Major State Taxes, January 1, 2005
Married Couples Pay Majority of Federal Income Taxes, Received Majority of Bush Tax Cuts, by Scott A. Hodge, October 25, 2004
Comparing the Kennedy, Reagan and Bush Tax Cuts, by William Ahern, August 24, 2004
Bush Tax Cuts Erased Income Tax Burden for 7.8 Million Families, by J. Scott Moody and Scott A. Hodge, August 17, 2004
New CBO Study Confirms Wealthiest Americans Bear Income Tax Burden, by Scott A. Hodge, August 13, 2004
The Growing Class of Americans Who Pay No Federal Income Taxes, by Scott A. Hodge and J. Scott Moody, April 14, 2004
Federal Income Taxes and the Cost of Living, by J. Scott Moody and David Hoffman, November 1, 2003
40 Million Filers Pay No Income Taxes, Many Get Generous Refunds, by Scott A. Hodge, June 5, 2003
Own a Business? You May be Rich: Two-Thirds of Taxpayers Hit by Highest Tax Rate Have Business Income, by Scott A. Hodge, May 5, 2003
Married Couples File Less Than Half of All Tax Returns, But Pay 74 Percent Of All Income Taxes, by Scott A. Hodge, March 25, 2003
The Effect on a Typical Family of Four of Accelerating Scheduled Tax Cuts and Making Temporary Tax Relief Permanent, by John S. Barry, February 1, 2003
How the Bush Tax Cuts Affect Families with Children at Different Income Levels, by Scott A. Hodge, January 7, 2003
How the Federal Tax Code Affects Young Americans, by Roger S. Kuo, November 1, 2002
The Cost of Complying with the Federal Income Tax, by J. Scott Moody, July 1, 2002
The Effect of Temporary Tax Relief on a Typical American Family of Four, by John S. Barry, May 1, 2002
Who Pays the Federal Individual Income Tax?, by David Hoffman, February 1, 2002
The Cost of Tax Compliance, by J. Scott Moody, July 1, 2001
The Cost of Complying with the U.S. Federal Income Tax, by J. Scott Moody, November 1, 2000
The Impact of Tax Complexity on Small Business, by J. Scott Moody, September 1, 2000
International Aspects of Tax Reform, by J. D. Foster, Ph.D., April 1, 2000
A Primer on the Economic Implications of Marginal Tax Rates, by Patrick Fleenor, November 1, 1999
Distribution of the Federal Individual Income Tax, by Patrick Fleenor, October 1, 1999
Top Five Percent of Taxpayers Pay Over Half of Total Federal Individual Income Taxes, by Patrick Fleenor, November 1, 1998
The Marriage Penalty, by Claire Hintz, March 1, 1998
Latest Tax Data Shows Top 1% Paying Over 30% of Total Federal Individual Income Taxes, by Patrick Fleenor, October 1, 1997
Income and the Art of Tax Distribution Analysis, by J. D. Foster, Ph.D., August 1, 1997
The Popular Definition of Income and Its Implications for Tax Policy, by Arthur P. Hall, Ph.D., March 1, 1997
The Concept of Income Revisited: An Investigation into the Double Taxation of Saving, by Arthur P. Hall, Ph.D., February 1, 1997
A Half Century of Small Business Federal Income Tax Rates and Collections, by Arthur P. Hall, Ph.D. and Gary Leff, October 1, 1996
The Flat Tax and Housing Values, by J. D. Foster, Ph.D., May 1, 1996
Growth of the Earned Income Tax Credit, by Arthur P. Hall, Ph.D. and J. Scott Moody, September 1, 1995
Who Pays Federal Income Taxes?, by Chris R. Edwards, November 1, 1994
Effects of Tax Policy on Corporate Financing Decisions: Integration of the Corporate and Personal Income Tax, by Craig T. Schulman, Ph.D., Deborah W. Thomas, J.D. and Keith F. Sellers, D.B.A, October 1, 1994
Individual Effective Tax Rates in the United States, by Arthur P. Hall, Ph.D., June 1, 1994
More Battles over Tax Burdens, April 16, 1987
Consumption Tax: An Idea Whose Time is Coming?, by TF Staff, January 1, 1983
A Value-Added Tax for the United States?, by TF Staff, June 1, 1979
Tax Review: Capital Gains, Losses in Income Taxation, by Dan Throop Smith, December 1, 1972
City Income Taxes, by TF Staff, December 1, 1967
Federal Non-Income Taxes: An Examination of Selected Revenue Sources, by TF Staff, April 1, 1965
Tax Reduction and Reform: A Summary of President Kennedy's Tax Proposals, by TF Staff, February 11, 1963
Retail Sales and Individual Income Taxes in State Tax Structures, by TF Staff, January 1, 1962
The Federal Individual Income Tax: Revising the Rate and Bracket Structure, by TF Staff, November 1, 1959
Are High Surtax Rates Worthwhile?, by TF Staff, March 1, 1957
Links to Other Tax Policy Resources, December 31, 1969