How much does the average American actually pay in taxes?
Combining direct and indirect taxes, as well as taxes from state and local government, the average American family paid $17,902 in taxes in 2021.
Key statistics. The average American will pay $524,625 in taxes throughout their lifetime — that's a third (34.7%) of all estimated lifetime earnings ($1,494,986) spent on taxes.
| Taxes as % of income | ||
|---|---|---|
| Income group | Income range | Federal taxes |
| Middle 20% | $51,500–$86,800 | 15.0% |
| Fourth 20% | $86,800–$147,300 | 16.1% |
| Next 15% | $147,300–$308,600 | 19.0% |
The average fee for preparing Form 1040 with Schedule A to itemize personal deductions, and a state income tax return, was a flat fee of $323. The average fee for Form 1040 with the standard deduction, plus a state income tax return, was $220.
As of Apr 4, 2024, the average annual pay for an After Tax in the United States is $58,389 a year. Just in case you need a simple salary calculator, that works out to be approximately $28.07 an hour. This is the equivalent of $1,122/week or $4,865/month.
The top 10 percent of earners bore responsibility for 76 percent of all income taxes paid, and the top 25 percent paid 89 percent of all income taxes. Altogether, the top 50 percent of filers earned 90 percent of all income and were responsible for 98 percent of all income taxes paid in 2021.
The top 1% of taxpayers — those who earn $561,351 or more — paid 42.3% of the total tax revenue collected in 2020, according to the latest figures from the IRS. In fact, the top 1-percent of taxpayers paid more income taxes than the bottom 90-percent all together.
One recent study, for instance, found that income taxes take, on average, nearly 10 percent of family earnings from high earners in the Golden State, but just 1.2 percent from middle-income residents.
Although most Americans believe the middle class bears the heaviest tax burden, it's actually the top 1% who pay the highest federal tax rate, at 25.9%, the Tax Foundation analysis found. But the average tax rate paid by the top 1% has declined in recent decades, according to the Tax Foundation analysis.
In 2020, according to Pew Research Center analysis, the median for upper income households was around $220,000 and the median for middle income households was slightly above $90,000.
What country has the highest taxes?
The long-troubled west African country Ivory Coast has the highest income tax rate in the world.
2024 tax brackets (for taxes filed in 2025)
In 2024, the top tax rate of 37% applies to those earning over $609,350 for individual single filers, up from $578,125 last year.
- Earn immediate tax deductions from your medical plan.
- Defer payment of taxes.
- Claim a work-from-home office tax deduction.
- Analyze whether you qualify for self-employment taxes.
- Deduct taxes through unreimbursed military travel expenses.
- Donate stock.
Annual / Monthly / Weekly / Hourly Converter
How much is your salary? $4,000 monthly is how much per hour? If you make $4,000 per month, your hourly salary would be $23.08.
Frequently Asked Questions. $4,000 a month is how much a year? If you make $4,000 a month, your yearly salary would be $48,006.40.
$2,800 a month is how much an hour? If you make $2,800 a month, your hourly salary would be $16.15.
While giant companies enjoyed record profits in recent years, many still pay lower tax rates than most working families. That's in part because many take advantage of generous tax breaks and stash profits in tax havens around the world.
Who Does Not Have to Pay Taxes? Generally, you don't have to pay taxes if your income is less than the standard deduction, you have a certain number of dependents, working abroad and are below the required thresholds, or are a qualifying non-profit organization.
In 2020, the latest year with available data, the top 1 percent of income earners earned 22 percent of all income and paid 42 percent of all federal income taxes – more than the bottom 90 percent combined (37 percent).
Increased taxes on the wealthiest individuals could lift people out of poverty, address the climate crisis, fund childcare, and create well-paying jobs. We urge you to join Oxfam's global community and make the ultra-rich pay their fair share of taxes.
What percentage of taxes are paid by race?
For example, white Americans are 83 percent of total taxpayers, and the percentage of zero-tax filers who are white is 79 percent. African Americans are roughly 13 percent of total taxpayers and 17 percent of zero-tax filers. Asian Americans comprise 3.6 percent of total taxpayers and 3.4 percent of zero-tax filers.
Texas pays an exorbitant $17B in excise taxes to the federal government – more than any other state by far and more than the income taxes on Texas's top 1% of earners.
Most wealthy people don't see credit cards as a way to splurge on luxuries or accumulate debt. Instead, rich people use credit cards to their financial advantage. Let's explore the six credit card habits rich people use to maximize their money.
High-Income Taxpayers Paid the Majority of Federal Income Taxes. In 2020, the bottom half of taxpayers earned 10.2 percent of total AGI and paid 2.3 percent of all federal individual income taxes. The top 1 percent earned 22.2 percent of total AGI and paid 42.3 percent of all federal income taxes.
Not surprisingly, California takes first place as the most expensive state for millionaires. The Golden State recently raised its top income tax bracket by 1.1%, from 13.3% to 14.4%. But California was the most expensive state for high earners last year, too, before the increase took effect.
