All about taxes
All about taxes
In FY 2025...
$2.6T
$1.7T
$450B
How does it all work? Let's peek behind the curtain
When does the One Big Beautiful Bill Act take effect?
Some OBBBA provisions became law in 2025, others won't until 2028. Here's a look at what to expect when.
What does it cost the IRS to collect taxes?
The Internal Revenue Service (IRS) spent $16.1 billion to collect $4.7 trillion in taxes in 2023.
Which states contribute the most and least to federal revenue?
In 2024, Californians paid about $275.6 billion more to the federal government than they received.
How do tax payments vary between income levels?
Effective tax rates have declined across income groups, but the portion of taxes paid by high income people has grown since the Tax Cuts and Jobs Act (TCJA) was enacted in 2017.
The Earned Income Tax Credit is designed to benefit low-income workers, particularly those with children. In 2022, 24.1 million tax returns claimed the EITC, and benefits totaled $60.1 billion.
Steve Ballmer explains the whole US tax system in 16 minutes
Who pays no federal income tax?
A large portion of people do not pay federal income taxes because they do not have federally taxable income after accounting for deductions.
In 2023, 30.5% of all tax returns did not have taxable income and, thus, did not pay federal income taxes, down from 34.7% in 2018.
How many people take SALT deductions?
The Tax Cuts and Jobs Act of 2017 introduced a $10,000 cap on the State and Local Tax (SALT) deduction while also nearly doubling the standard deduction.
Since those changes took effect, the portion of individual tax returns claiming the SALT deduction has declined from 30.4% in 2017 to 9.3% in 2023.
Complete this line chart on the percentage of tax returns claiming SALT deductions. Take your best guess and press "I'm done" when finished.
While the original SALT cap and increased standard deduction were scheduled to sunset at the end of 2025, the recently enacted One Big Beautiful Bill Act (OBBBA) temporarily raised the cap to $40,000 and slightly increased the standard deduction further.
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Trends in itemized deductions since the Tax Cuts and Jobs Act
Among the many changes introduced by the Tax Cuts and Jobs Act of 2017 (TCJA), one of the most significant was nearly doubling the standard deduction and scaling back some itemized deductions.
How many people claim the state and local tax (SALT) deduction?
One of the largest itemized deductions in the tax code is the State and Local Tax (SALT) deduction. It allows taxpayers to reduce their federally taxable income by the amount they pay in state and local taxes, including property and income or sales taxes.
How did the Tax Cuts and Jobs Act impact pass-through entities?
In 2022, 15.9% of tax returns claimed the Qualified Business Income (QBI) deduction, collectively lowering their taxable incomes by $216.1 billion.
Before and after TCJA: The Child Tax Credit
The Tax Cuts and Jobs Act of 2017 (TCJA) introduced several expansions to the Child Tax Credit (CTC), including doubling the maximum benefit per child. The One Big Beautiful Bill Act permanently increased the maximum benefit to $2,200 and set it to rise with inflation.
Who receives the Earned Income Tax Credit?
The tax code contains several tax credits designed to support workers and children. Among the largest is the Earned Income Tax Credit (EITC), which delivers upwards of $60 billion per year to low-income households nationwide.
Improving the timeliness, accessibility, and usefulness of tax data
Over the past year, USAFacts evaluated SOI tax data and consulted experts to identify ways to improve data access, resulting in the findings and recommendations summarized in this report.
The latest on taxes
How has Tax Cuts and Jobs Act impacted individual income taxes?
In 2025, the OBBBA expanded or made parts of the Tax Cuts and Jobs Act permanent.
What does the Treasury Department do?
The Treasury is responsible for overseeing economic conditions and ensuring the financial security of the US.
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.
