In 2021, taxpayers filed 153.6 million tax returns, reported earning more than $14.7 trillion in adjusted gross income (AGI), and paid nearly $2.2 trillion in individual income taxes. The top 50 percent of all taxpayers paid 97.7 percent of all federal individual income taxes, while the bottom 50 percent paid the remaining 2.3 percent. The bottom half of taxpayers, or taxpayers making under $46,637, faced an average income tax rate of 3.3 percent.
Capital gains realizations exceeded $2 trillion to reach a 40-year high, driving income growth and taxes paid for high-income groups.
The top 1 percent of taxpayers accounted for more income taxes paid than the bottom 90 percent combined. The top 1 percent of taxpayers paid more than $1 trillion in income taxes while the bottom 90 percent paid $531 billion.