The debate over who pays their “fair share” in America’s tax system is louder than ever, but IRS data from 2022, just released in early 2025, gives us a clear picture. The average U.S. taxpayer paid $13,890 in federal income taxes, but this average hides extreme disparities.
In reality, tax liability is split along steep income lines. The top 1% of earners paid an eye-popping $561,523 on average, while the bottom 50% paid just $822.
And the disparity doesn’t stop at dollar figures. When it comes to tax rates, the difference is even more striking. According to the IRS’s Statistical Tables by Tax Percentile, the average effective federal income tax rate for all Americans stood at 14.5%, but for the top 1%, it was 26.1% – seven times higher than the 3.7% rate paid by the bottom half of earners.
The numbers tell a powerful story: the U.S. income tax system remains highly progressive, taxing higher earners at dramatically higher rates both in absolute and relative terms.
But there’s more to unpack, especially when considering long-term trends, the effects of tax reforms like the TCJA, and the hidden costs borne by middle-class families.
Total U.S. Federal Income Tax Snapshot (2022 Data)
Before breaking down tax by income bracket, here’s an overview of what Americans reported in income and paid in federal income tax, based on IRS data for tax year 2022.
| Metric | Value |
| Total Tax Returns Filed | 153,801,397 |
| Adjusted Gross Income (AGI) | $14.75 trillion |
| Total Federal Income Tax Paid | $2.14 trillion |
| Average Federal Income Tax per Return | $13,890 |
| Average Federal Income Tax Rate | 14.5% |
As noted by the IRS, these figures exclude payroll taxes, which tend to fall more heavily on lower- and middle-income workers. Therefore, this analysis reflects only federal income taxes, which account for about 25% of total U.S. taxes paid.
Federal Income Tax by Wealth Bracket: Detailed Breakdown
This table shows how both total tax paid and effective tax rates differ across six key income groups. These numbers represent averages based on IRS 2022 filings.
| Income Bracket | AGI Threshold | Avg. Tax Paid | Avg. Tax Rate | Share of AGI | Share of Tax Paid | Returns in Bracket |
| Top 1% | $663,164+ | $561,523 | 26.1% | 22.4% | 40.4% | 1,538,014 |
| Top 5% | $261,591+ | $169,466 | 23.1% | 38.3% | 61.0% | 7,690,070 |
| Top 10% | $178,611+ | $99,971 | 21.1% | 49.4% | 72.0% | 15,380,140 |
| Top 25% | $99,857+ | $48,433 | 18.1% | 69.9% | 87.2% | 38,450,349 |
| Top 50% | $50,339+ | $26,959 | 15.9% | 88.5% | 97.0% | 76,900,699 |
| Bottom 50% | <$50,339 | $822 | 3.7% | 11.5% | 3.0% | 76,900,699 |
| All Taxpayers | – | $13,890 | 14.5% | 100% | 100% | 153,801,397 |
As noted by the Tax Foundation, this data underscores the sharp tax skew: just 1.5 million top earners paid over $863 billion in taxes, while the entire bottom half, more than 76 million people, paid only $63 billion.
Historical Perspective: Are Tax Rates Going Up or Down?
When comparing 2022 rates to those from previous years, one trend becomes clear: the average federal income tax rate has fallen across the board since the Tax Cuts and Jobs Act (TCJA) of 2017.
| Bracket | 2017 | 2018 | 2019 | 2020 | 2021 | 2022 |
| Bottom 50% | 4.0% | 3.4% | 3.5% | 3.1% | 3.3% | 3.7% |
| 50%–25% | 8.1% | 6.9% | 6.9% | 6.5% | 7.2% | 7.7% |
| 25%–10% | 11.0% | 9.8% | 9.8% | 9.5% | 10.3% | 10.7% |
| 10%–5% | 14.3% | 13.1% | 13.3% | 13.1% | 14.3% | 14.3% |
| 5%–1% | 19.5% | 17.3% | 17.4% | 17.5% | 18.9% | 18.8% |
| Top 1% | 26.8% | 25.4% | 25.6% | 26.0% | 25.9% | 26.1% |
The TCJA, as explained by the IRS and Heritage Foundation, lowered tax rates and expanded standard deductions, resulting in smaller average liabilities for nearly every group.
Despite these cuts, high earners still contribute a larger share than ever before.
Millionaires vs. the Middle Class: What Do the Rich Really Pay?
Critics often argue that millionaires pay less in taxes than teachers, firefighters, or nurses. But according to government forecasters at the Joint Committee on Taxation, that’s false.
- In 2024, only 1 out of 180 taxpayers earned $1 million+
- These individuals received 15% of the total U.S. income
- Yet they paid 39% of all federal income taxes
- Average tax paid by this group: $776,800
Compare that to someone earning between $50,000 and $100,000, who paid about $1,600 to $7,500, depending on deductions.
As noted by ASA, millionaire earners pay 475× more than middle earners in raw dollars – and about 10× more in effective rate.
But What About the Hidden Tax? Inflation Hurts Everyone
One thing income tax tables don’t show is the indirect burden of federal spending and inflation.
According to the Heritage Foundation, as the government spends more – about $7 trillion per year – the result is economic drag in the form of higher prices, lost bonuses, and job offshoring.
Middle-income earners pay not just through taxes, but also through:
- Higher grocery, gas, and housing costs
- Lower real wages due to inflation
- Shrinking retirement returns as interest rates rise
In that sense, the real tax burden for the middle class may be underestimated in official IRS data.
Methodology
This analysis is based on the most recent IRS data released in early 2025. It includes only federal individual income taxes, not payroll taxes or corporate taxes. All figures are drawn from the IRS SOI statistical tables and the Tax Foundation’s analysis of AGI percentiles.
Bracket thresholds are determined by adjusted gross income (AGI) split points, excluding dependent filers. Average tax paid includes tax after credits but not refundable credit portions (classified as spending).
Additional insights are drawn from the Joint Committee on Taxation and Heritage Foundation commentary for 2024 policy forecasts.
Bottom Line
| Insight | Value |
| Avg. Tax Paid (Top 1%) | $561,523 |
| Avg. Tax Paid (Bottom 50%) | $822 |
| Share of Total Taxes Paid (Top 1%) | 40.4% |
| Share of Total AGI (Bottom 50%) | 11.5% |
| Federal Income Tax Revenue (2022) | $2.14 trillion |
| Total Returns Filed | 153.8 million |
| U.S. Federal Spending per Household (Est.) | $50,000+ |
| Inflation’s Hidden Tax Impact | Substantial for middle-income earners |
As the numbers make clear, high earners are not escaping taxation. They’re paying the most, and paying at rates far above the national average.
Yet the middle class feels increasingly squeezed, not because the wealthy don’t pay taxes, but because of federal spending and inflationary pressure that erodes everyday affordability.
The debate over tax fairness will continue, but the data leaves no ambiguity: America’s federal income tax structure places the heaviest burden on its wealthiest citizens, and the real economic challenge may be what comes after the tax bill is paid.
