How many taxpayers in the usa

The top fifty percent of filers earned 88 percent of all income and were responsible for 97 percent of all income taxes paid in As NTUF reported earlier this year, the number of filers with no income tax liability increased from to to While saw a strong economy that would ordinarily increase the number of individuals with income tax burdens, the TCJA removed additional people from income tax rolls by increasing the standard deduction and expanding refundable credits.

In that year, the income tax share of the top one percent of filers was 19 percent — less than half of what it is now 40 percent. This is despite the fact that the top marginal income tax rate was 70 percent in and has since fallen to 37 percent in In , it stood at 7 percent. That dropped to a low of 2. As the economy gradually improved after the recession, the tax share of this income group gradually increased to 3.

Although the economy remained strong in , this group's tax share fell from the previous year. This can be attributable in part to the lower rates and higher standard deduction enacted in the TCJA along with its additional provisions designed to ease burdens low-income earners such as the increased child tax credit.

Democratic party leaders have taken rhetorical shots against tax reform bill since it was introduced back in Progressives continue to assail the TCJA in the years since its passage. This ignores that most taxpayers paid less thanks to the TCJA. In fact, the Tax Policy Center estimated that nearly two-thirds of households paid less income taxes in than they would have under the pre-TCJA code, while 6 percent paid more mostly due to the new cap on the state and local tax deduction impacting residents of high-tax states.

Erica York. Download PDF. Download Data. You can download the full data set in Excel or PDF form above. Was this page helpful to you? Thank You! Let us know how we can better serve you! Give Us Feedback. Share Tweet Share Email. About the Author. The Tax Cuts and Jobs Act in overhauled the federal tax code by reforming individual and business taxes. It was pro-growth reform, significantly lowering marginal tax rates and cost of capital.

An 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. The Federal Income Tax was established in with the ratification of the 16th Amendment.

Though barely years old, individual income taxes are the largest source of tax revenue in the U. The 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. It is a broad measure that includes income from wages, salaries, interest, dividends, retirement income, Social Security benefits, capital gains, business, and other sources, and subtracts specific deductions. February 25, Erica York. Download PDF. Download Data. Table 1.