The answer depends on the tax being measured. For federal individual income taxes, high earners pay the largest share by far. For many working households, payroll taxes are the heavier day to day federal tax burden.
Current IRS percentile data for tax year 2023 shows that the top 1% of tax returns paid 38.4% of all federal individual income taxes. That group included about 1.53 million returns, with adjusted gross income of at least $675,602. The average federal income tax bill in the group was about $537,909.
The bottom half of tax returns paid 3.3% of federal individual income taxes. That group included about 76.5 million returns, with adjusted gross income below $53,801. The average federal income tax bill in the group was about $913.
The gap is large because the federal income tax is progressive. Higher income tax returns report a much larger share of income, and they face higher effective tax rates. The broader tax picture is more complicated because federal revenue also comes from payroll taxes, corporate income taxes, excise taxes, customs duties, estate taxes, and other sources.
Total US Federal Income Tax
IRS Statistics of Income data gives the cleanest view of who pays federal individual income taxes. The figures below cover individual income tax returns excluding dependents, ranked by adjusted gross income.
| Metric | Value |
| Total returns included | 153,076,443 |
| Adjusted gross income | $15.20 trillion |
| Total federal individual income tax paid | $2.14 trillion |
| Average federal income tax per return | $14,009 |
| Average federal income tax rate | 14.1% |
Federal individual income tax is not the same as total tax burden. IRS percentile tables do not include Social Security payroll taxes, Medicare payroll taxes, state taxes, local taxes, sales taxes, property taxes, or corporate taxes that may be borne indirectly by households.
Federal Income Tax by Income Bracket
The table below shows how income, tax payments, and effective tax rates are divided across the main IRS income groups.
| Income Group | AGI Threshold | Avg. Tax Paid | Avg. Tax Rate | Share of AGI | Share of Tax Paid | Returns in Group |
| Top 1% | $675,602+ | $537,909 | 26.3% | 20.6% | 38.4% | 1,530,764 |
| Top 5% | $272,209+ | $166,136 | 23.0% | 36.4% | 59.3% | 7,653,822 |
| Top 10% | $187,608+ | $98,821 | 20.9% | 47.6% | 70.5% | 15,307,644 |
| Top 25% | $105,604+ | $48,363 | 17.8% | 68.5% | 86.3% | 38,269,111 |
| Top 50% | $53,801+ | $27,104 | 15.6% | 87.7% | 96.7% | 76,538,222 |
| Bottom 50% | Below $53,801 | $913 | 3.7% | 12.3% | 3.3% | 76,538,221 |
| All returns | All income levels | $14,009 | 14.1% | 100% | 100% | 153,076,443 |
One detail is easy to miss. The top 10% paid 70.5% of federal individual income taxes, but they reported 47.6% of adjusted gross income. The top 50% paid 96.7% of the income tax total.
That does not mean every high income household feels rich. It means federal individual income tax liability is highly concentrated among returns with higher adjusted gross income.
What Changed From the Previous IRS Release
The federal income tax system remains strongly progressive, but the top share moved down from the pandemic era peak. The top 1% paid 45.8% of federal individual income taxes in 2021, 40.4% in 2022, and 38.4% in 2023.
The decline does not mean high earners stopped paying the most. It means the unusually large capital gains and high income gains from 2021 cooled. Capital gains, bonuses, business income, and investment income can move the top income share faster than wages move for most households.
| Measure | 2022 | 2023 | What Changed |
| Top 1% AGI threshold | $663,164 | $675,602 | Higher threshold |
| Top 1% share of AGI | 22.4% | 20.6% | Lower income share |
| Top 1% share of income taxes paid | 40.4% | 38.4% | Lower tax share |
| Top 1% average income tax rate | 26.1% | 26.3% | Slightly higher rate |
| Bottom 50% share of income taxes paid | 3.0% | 3.3% | Slightly higher share |
| Total federal individual income tax paid | $2.136 trillion | $2.144 trillion | Slight increase |
The most useful reading is not that the rich pay less. The better reading is that the top share is sensitive to the business cycle, asset markets, and realized capital gains.
Effective Federal Income Tax Rates Over Time
Average federal income tax rates fell after the Tax Cuts and Jobs Act and remained lower than 2017 levels for most groups. The top 1% still pays the highest average rate in the IRS percentile tables.
| Income Group | 2017 | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 |
| Bottom 50% | 4.0% | 3.4% | 3.5% | 3.1% | 3.3% | 3.7% | 3.7% |
| 50% to 25% | 8.1% | 6.9% | 6.9% | 6.5% | 7.2% | 7.7% | 7.7% |
| 25% to 10% | 11.0% | 9.8% | 9.8% | 9.5% | 10.3% | 10.7% | 10.6% |
| 10% to 5% | 14.3% | 13.1% | 13.3% | 13.1% | 14.3% | 14.3% | 14.2% |
| 5% to 1% | 19.5% | 17.3% | 17.4% | 17.5% | 18.9% | 18.8% | 18.7% |
| Top 1% | 26.8% | 25.4% | 25.6% | 26.0% | 25.9% | 26.1% | 26.3% |
The 2026 tax code keeps the same seven individual income tax rates of 10%, 12%, 22%, 24%, 32%, 35%, and 37%. The IRS says the top federal income tax rate remains 37% for single filers with taxable income above $640,600 and married couples filing jointly with taxable income above $768,700.
The standard deduction also rises for tax year 2026. It is $16,100 for single filers, $32,200 for married couples filing jointly, and $24,150 for heads of household.
Income Taxes Are Only Part of the Tax Burden
Federal individual income taxes are the largest single source of federal revenue. Treasury Fiscal Data says individual income taxes made up 50.7% of federal revenue in fiscal year 2025 and 52.3% of federal revenue so far in fiscal year 2026.
Payroll taxes are the second major source. They fund Social Security and Medicare, and they apply directly to wages and self employment income. For many middle income workers, payroll tax can be larger than federal income tax.
That is why two statements can both be true.
- High earners pay most federal individual income taxes.
- Many working households feel payroll taxes more consistently in every paycheck.
The income tax is progressive because rates rise with taxable income and refundable credits reduce or erase liability for many lower income households. Payroll taxes are different because Social Security tax applies only up to a wage cap, while Medicare tax applies more broadly and includes an added tax for higher earners.
Why the Bottom Half Pays a Small Share of Federal Income Tax?
The bottom half pays a small share of federal income tax for several reasons.
- Many returns have low taxable income after the standard deduction.
- Refundable and nonrefundable credits reduce income tax liability.
- Some retirees and students file returns with little taxable income.
- Lower wage workers may pay payroll tax even when they owe little or no federal income tax.
- Households with children may qualify for credits that reduce final income tax owed.
That does not mean lower income workers pay no tax. It means the IRS income tax table does not capture every tax they pay.
Millionaires, High Earners, and the Difference Between Income and Wealth
Public arguments about taxes often mix up millionaires, billionaires, high earners, and wealthy households. IRS percentile tables rank people by adjusted gross income, not net worth.
A doctor, business owner, executive, lawyer, investor, or professional athlete may appear in the top 1% because the tax return reports high income in that year. A billionaire with large unrealized gains may report far less taxable income if assets are not sold.
That distinction matters. The federal income tax reaches salaries, business income, interest, dividends, realized capital gains, retirement income, and other taxable income. It generally does not tax unrealized gains until assets are sold or another taxable event occurs.
IRS data answers who pays the most reported federal income tax. It does not fully answer who carries the largest tax burden relative to total economic wealth.
State Taxes Can Change the Household Picture
Federal income tax is only one layer. State income taxes, property taxes, sales taxes, gasoline taxes, and local taxes can change what a household actually feels.
A high earning household in a state with high income tax may have a very different combined tax bill than a similar household in a state with no wage income tax. Our guide to the highest and lowest income tax states explains how state systems can change the final burden.
Sales taxes and excise taxes can also hit lower income households harder as a share of income because basic spending takes a larger part of their budget.
Inflation Is Not a Tax, but It Changes How Taxes Feel
Inflation does not show up as a line on a federal tax return, but it changes how much income remains after taxes and bills. Higher prices can make a flat or even slightly higher paycheck feel smaller.
Tax brackets and the standard deduction are indexed for inflation, which helps reduce bracket creep. That protection is not complete for every household because housing, groceries, insurance, child care, and transportation can rise faster than official tax adjustments.
That is why many middle income households feel squeezed even when IRS data shows that high earners pay most income tax dollars. The income tax bill may not be the only problem. The larger strain may come from prices, interest rates, rent, mortgage payments, health costs, and real wage growth. Our U.S. inflation data gives more context on that pressure.
Federal Revenue Is Still Heavily Dependent on Individual Taxpayers
The IRS Data Book shows how large the federal tax system has become. During fiscal year 2025, the IRS collected $5.3 trillion in gross taxes, processed 271.4 million returns and other forms, and issued $638.8 billion in refunds.
That broad collection total includes far more than individual income tax. Still, individual income tax remains the largest federal revenue source. When high income taxpayers report lower capital gains or business income, federal receipts can move sharply.
That creates a policy tradeoff. A progressive tax code raises large amounts from high earners, but it also makes federal receipts sensitive to top income swings.
CBO is Adding More to This
IRS tables are based on tax returns. The Congressional Budget Office uses a broader household framework that includes federal taxes and means tested transfers. Its distribution of household income report shows that the federal tax and transfer system remains progressive after taxes and transfers are counted.
CBO analysis is useful because it looks beyond income tax alone. It includes individual income taxes, payroll taxes, corporate income taxes, and excise taxes. It also examines how federal transfers affect household income after government support.
The IRS and CBO sources answer different questions.
| Source | Best For | Main Limitation |
| IRS percentile tables | Who pays federal individual income tax by AGI group | Excludes payroll, state, local, and many indirect taxes |
| CBO household distribution reports | Broader federal tax burden and transfers by household income | Runs with a longer data lag and uses model based allocation |
| Treasury revenue data | Current federal revenue sources by tax type | Does not show burden by income group |
Methodology
This analysis uses IRS Statistics of Income Table 4.1 for tax year 2023. The table covers individual income tax returns excluding dependents and ranks returns by adjusted gross income.
Total income tax means income tax after credits, limited to zero, plus net investment income tax and tax from Form 4970. It does not include refundable credit amounts classified as spending.
Average tax paid is calculated as total income tax paid by the group divided by the number of returns in that group. Average tax rate is total income tax divided by adjusted gross income.
Bottom 50% figures are calculated by subtracting the top 50% from all returns. Middle group rates in the historical table are calculated from the difference between cumulative IRS groups.
Amounts are rounded for readability. Small differences can appear because IRS tables use rounded estimates.
Bottom Line
| Question | Answer |
| Who pays the most federal individual income tax? | The top 1% pays the largest single share, at 38.4%. |
| How much did the top 1% pay on average? | About $537,909 per return. |
| How much did the bottom 50% pay on average? | About $913 per return. |
| What AGI put a return in the top 1%? | $675,602 or more. |
| What AGI put a return in the top 50%? | $53,801 or more. |
| How much federal individual income tax was paid? | $2.14 trillion. |
| What is missing from IRS income tax tables? | Payroll taxes, state taxes, local taxes, sales taxes, property taxes, and indirect tax burdens. |
America’s federal individual income tax is highly progressive. High earners pay the most dollars, the highest effective rates, and the largest share of the total.
The broader tax burden is not as simple. Payroll taxes matter more for many workers, state and local taxes vary widely, and inflation affects how much buying power remains after taxes.
The cleanest conclusion is that high income Americans pay most federal income taxes, but a full answer to who feels the largest tax pressure has to include payroll taxes, living costs, and state level taxes too.
