Summary of the Latest Federal Income Tax Data, 2017 Update

The Internal Revenue Service has recently released new data on individual income taxes for taxA tax is a mandatory payment or charge collected by local, state, and national governments from individuals or businesses to cover the costs of general government services, goods, and activities. year 2015, showing the number of taxpayers, adjusted gross incomeFor individuals, gross income is the total pre-tax earnings from wages, tips, investments, interest, and other forms of income and is also referred to as “gross pay.” For businesses, gross income is total revenue minus cost of goods sold and is also known as “gross profit” or “gross margin.” , and income tax shares by income percentiles.[1]

The data demonstrate that the U.S. individual income taxAn individual income tax (or personal income tax) is levied on the wages, salaries, investments, or other forms of income an individual or household earns. The U.S. imposes a progressive income tax where rates increase with income. The Federal Income Tax was established in 1913 with the ratification of the 16th Amendment. Though barely 100 years old, individual income taxes are the largest source of tax revenue in the U.S. continues to be very progressive, borne primarily by the highest income earners.

• In 2015, 141.2 million taxpayers reported earning $10.14 trillion in adjusted gross income and paid $1.45 trillion in individual income taxes.
• The share of reported income earned by the top 1 percent of taxpayers rose slightly to 20.7 percent in 2015. Their share of federal individual income taxes fell slightly, to 39.0 percent.
• In 2015, the top 50 percent of all taxpayers paid 97.2 percent of all individual income taxes while the bottom 50 percent paid the remaining 2.8 percent.
• The top 1 percent paid a greater share of individual income taxes (39.0 percent) than the bottom 90 percent combined (29.4 percent).
• The top 1 percent of taxpayers paid a 27.1 percent individual income tax rate, which is more than seven times higher than taxpayers in the bottom 50 percent (3.6 percent).

Reported Income and Taxes Paid Both Increased in 2015

Taxpayers reported $10.14 trillion in adjusted gross income (AGI) on 141.2 million tax returns in 2015. Total AGI grew $434 billion from 2014 levels, less than the $675 billion increase between 2013 to 2014. There were 1.6 million more tax returns filed in 2015 than in 2014, meaning that average AGI rose by $2,261 per return, or 3.3 percent.

Taxes paid rose to $1.45 trillion for all taxpayers in 2015, a 5.8 percent increase over the previous year. The average individual income tax rate for all taxpayers rose slightly, from 14.16 percent to 14.34 percent, and the average tax rateThe average tax rate is the total tax paid divided by taxable income. While marginal tax rates show the amount of tax paid on the next dollar earned, average tax rates show the overall share of income paid in taxes. increased for all groups except the top 1 percent.

The most likely explanation behind the higher tax rates in 2015 is a phenomenon known as “real bracket creepBracket creep occurs when inflation pushes taxpayers into higher income tax brackets or reduces the value of credits, deductions, and exemptions. Bracket creep results in an increase in income taxes without an increase in real income. Many tax provisions—both at the federal and state level—are adjusted for inflation. .” [2] When incomes rises faster than inflationInflation is when the general price of goods and services increases across the economy, reducing the purchasing power of a currency and the value of certain assets. The same paycheck covers less goods, services, and bills. It is sometimes referred to as a “hidden tax,” as it leaves taxpayers less well-off due to higher costs and “bracket creep,” while increasing the government’s spending power. , more income is pushed into higher brackets and thus becomes subject to higher tax rates.

The share of income earned by the top 1 percent rose slightly to 20.65 percent of AGI, up from 20.58 percent in 2014, but the share of the income tax burden for the top 1 percent fell slightly, from 39.48 percent in 2014 to 39.04 percent in 2015. The reason for this slight decrease is that growth in itemized deductions claimed by this group of taxpayers outpaced growth in AGI for this group from 2014 to 2015. Particularly, taxpayers claimed significantly larger deductions for state and local taxes paid.[3] By claiming an increased amount of itemized deductions in 2015, the top 1 percent of taxpayers paid federal income taxes on a smaller share of their income, resulting in a slightly lower effective income tax rate than in 2014.

Table 1. Summary of Federal Income Tax Data, 2015

	Top 1%	Top 5%	Top 10%	Top 25%	Top 50%	Bottom 50%	All Taxpayers
Note: Does not include dependent filers
Number of Returns	1,412,046	7,060,231	14,120,463	35,301,156	70,602,313	70,602,313	141,204,625
Adjusted Gross Income ($ millions)	$2,094,906	$3,658,556	$4,803,327	$6,997,737	$8,998,075	$1,144,545	$10,142,620
Share of Total Adjusted Gross Income	20.65%	36.07%	47.36%	68.99%	88.72%	11.28%	100.00%
Income Taxes Paid ($ millions)	$567,697	$866,447	$1,026,601	$1,259,698	$1,413,200	$41,125	$1,454,325
Share of Total Income Taxes Paid	39.04%	59.58%	70.59%	86.62%	97.17%	2.83%	1
Income Split Point	$480,930	$195,778	$138,031	$79,655	$39,275
Average Tax Rate	27.10%	23.68%	21.37%	18.00%	15.71%	3.59%	14.34%

High-Income Americans Paid Majority of Federal Income Taxes

In 2015, the bottom 50 percent of taxpayers (those with AGI below $39,275) earned 11.28 percent of total AGI. This group of taxpayers paid approximately $41 billion in taxes, or 2.83 percent of all income taxes in 2015.

In contrast, the top 1 percent of all taxpayers (taxpayers with AGI of $480,930 and above), earned 20.65 percent of all AGI in 2015, but paid 39.04 percent of all federal income taxes.

In 2015, the top 1 percent of taxpayers accounted for more income taxes paid than the bottom 90 percent combined. The top 1 percent of taxpayers paid $568 billion, or 39.04 percent of all income taxes, while the bottom 90 percent paid $428 billion, or 29.41 percent of all income taxes.

Figure 1.

High-Income Taxpayers Paid the Highest Average Income Tax Rates

The 2015 IRS data show that taxpayers with higher incomes pay much higher average income tax rates than lower-income taxpayers.[4]

The bottom 50 percent of taxpayers (taxpayers with AGIs below $39,275) faced an average income tax rate of 3.6 percent. As household income increases, the IRS data show that average income tax rates rise. For example, taxpayers with AGIs between the 10th and 5th percentiles ($138,031 and $195,778) paid an average effective rate of 14.0 percent – nearly four times the rate paid by those in the bottom 50 percent.

The top 1 percent of taxpayers (AGI of $480,930 and above) paid the highest effective income tax rate, at 27.1 percent, 7.5 times the rate faced by the bottom 50 percent of taxpayers.

Figure 2.

Taxpayers at the very top of the income distribution, the top 0.1 percent (with AGIs over $2.22 million), paid an even higher average income tax rate of 27.4 percent.

Appendix

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 measure of “income taxes paid” above) does not account for the refundable portion of EITC. If it were included, the tax share of the top income groups would be higher. The refundable portion is 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 over 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.
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, and others.
5. The unit of analysis here is that of 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.
6. These figures represent the legal incidence of the income tax. Most distributional tables (such as those from CBO, Tax Policy Center, Citizens for Tax Justice, the Treasury Department, and JCT) 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 1980–2015 (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%
Source: Internal Revenue Service.
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
The 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
The 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
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

Table 3. Adjusted Gross Income of Taxpayers in Various Income Brackets, 1980–2015 ($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%
Source: Internal Revenue Service.
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 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 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

Table 4. Total Income Tax after Credits, 1980–2015 ($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%
Source: Internal Revenue Service.
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 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 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

Table 5. Adjusted Gross Income Shares, 1980–2015 (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%
Source: Internal Revenue Service.
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 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 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%

Table 6. Total Income Tax Shares, 1980–2015 (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%
Source: Internal Revenue Service.
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 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 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%

Table 7. Dollar Cut-Off, 1980–2015 (Minimum AGI for Tax Returns to Fall into Various Percentiles; Thresholds Not Adjusted for Inflation)

Year	Total	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 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 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
Source: Internal Revenue Service.

Table 8. Average Tax Rate, 1980–2015 (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%
Source: Internal Revenue Service.
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 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 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%

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[1] Internal Revenue Service, “SOI Tax Stats – Individual Income Tax Rates and Tax Shares,” http://www.irs.gov/uac/SOI-Tax-Stats-Individual-Income-Tax-Rates-and-Tax-Shares.

[2] See Congressional Budget Office, The Budget and Economic Outlook: 2017 to 2027, January 2017, https://www.cbo.gov/sites/default/files/115th-congress-2017-2018/reports/52370-outlook.pdf.

[3] See Internal Revenue Service, “SOI Tax Stats, Table 1.4: All Returns: Sources of Income, Adjustments, and Tax Items,” https://www.irs.gov/statistics/soi-tax-stats-individual-income-tax-returns-publication-1304-complete-report.

[4] “Average income tax rate” is defined here as income taxes paid divided by adjusted gross income.

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