Who pays the most income tax?
In 2023, the top 5% of earners collectively paid nearly $1.3 trillion in income taxes, or about 60% of the national total.
The federal government generated $5.26 trillion in revenue in fiscal year 2025, half of which came from taxing people on their incomes. Individual income taxes in FY 2025 totaled $2.66 trillion, or $7,771 per person.
Half of federal revenue in 2025 came from individual income taxes.
Federal government revenue by category, FY 2025
How much income tax do the top earners pay?
Most of the government’s federal income tax revenue comes from the nation’s top income earners. In 2023, the top 5% of earners — people with incomes $272,209 and above — collectively paid over $1.27 trillion in income taxes, or about 60% of the national total.
If you include the top 10% — everyone who made at least $187,608 — that figure rises to $1.51 trillion, or 71% of the total.
The top 50% of earners contributed 97% of federal income tax revenue.
The top 1% of earners pay 38% of total income tax.
Share of total individual income tax revenue paid by income percentile, 2001–2023
People don't just pay taxes on their income. They also pay into Social Security and Medicare through payroll taxes. Plus, they’re subject to state, local, and sales taxes.
What types of income are taxed?
Taxable income includes:
- Wages, salaries, and employee benefits
- Rental income
- Goods or services sold or bartered
- Royalties (e.g. from copyrights and patents)
- Business entities
- Capital gains (e.g. stocks and bonds)
- Digital assets (e.g. cryptocurrency)
- Government benefits (e.g. unemployment, Social Security)
- Tax refunds, reimbursements, and rebates
- Court awards and damages
- Gambling winnings
- Prizes and awards
What are the income tax rates for different income brackets?
Individual taxpayers are taxed a percentage of their income, and that percentage depends on how much money they make in a year.
Income tax rates for a single taxpayer, 2025
These taxes are paid on the portions in each tax bracket. For instance, a single earner with a total income of $100,000 would pay 10% on $11,925, 12% on the next $39,600 (bringing them to $48,475), and then 22% on the remaining $51,525. Taxpayers may adjust the amount owed to the IRS for any applicable deductions or credits.
Read more about how much it costs the IRS to collect taxes, the role of the Treasury Department, and get data right in your inbox by subscribing to our weekly newsletter.
