How Much Do People Pay in Taxes?

How Much Do People Pay in Federal Taxes? | pgpf.org

These top two  graphics do NOT include state and local sales tax, nor property taxes, both of which tend to be very regressive, stacking onto the left sides of these graphs very significantly. Scroll down for TOTAL tax burden.

Effective tax rates: individual income and payroll taxes combined
Percent of cash income

SOURCE: TPC, Table T12‐0018 Effective Federal Tax Rates by Cash Income Percentile; 2011, February 2012. Compiled by PGPF.
NOTE: *Individual income tax rates for the lowest and second lowest quintiles are negative and are netted against the payroll tax rate. A quintile is one fifth of the population. Calculations assume that employees also pay the employer portion of payroll taxes in the form ofreduced wages. The breaks are (in 2011 dollars): 20% $16,812; 40% $33,542; 60% $59,486; 80% $103,465; 90% $163,173; 95%$210,998; 99% $532,613; 99.9% $2,178,886.

Effective tax rates: income, payroll, corporate and estate taxes combined
Percent of cash income

SOURCE: TPC, Table T12‐0018 Effective Federal Tax Rates by Cash Income Percentile; 2011, February 2012. Compiled by PGPF.
NOTE: *Individual income tax rates for the lowest and second lowest quintiles are negative and are netted against the payroll tax rate. A quintile is one fifth of the population. Calculations assume that employees also pay the employer portion of payroll taxes in the form ofreduced wages. The breaks are (in 2011 dollars): 20% $16,812; 40% $33,542; 60% $59,486; 80% $103,465; 90% $163,173; 95% $210,998; 99% $532,613; 99.9% $2,178,886.

Total tax burden, from the Center for Tax Justice, via the NY Times Economix Blog:

Federal individual income tax rates for married couples, filing jointly, 2012

Taxable Income		Marginal Tax Rate	Income Tax Owed
Over	But not over
$0	$17,400	10%	10% of taxable income
$17,400	$70,700	15%	10% x $17,400 = $1,740 plus 15% x income over $17,400
$70,700	$142,700	25%	$1,740 + 15% x (70,700 ‐17,400) = $9,735 plus 25% x income over $70,700
$142,700	$217,450	28%	$9,735 + 25% x (142,700 ‐ 70,700) = $27,735 plus 28% x income over $142,217
$217,450	$388,350	33%	$ 27,735 + 28% x ( 217,450 ‐ 142,700) = $ 48,665 plus 33% x income over $217,450
$388,350		35%	$48,665 + (388,350 – 217,450) = $105,062 plus 35% x income above $388,350

SOURCE: Joint Committee on Taxation, Overview Of The Federal Tax System As In Effect For 2012 (JCX 18‐12), February 24, 2012.

But note that these tax rates, particularly the top marginal rate are incredibly low in historical context, as are the tax burden on the wealthiest:

 

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