Where Do You Fall On the Tax Scale?

Each year, most of us are obligated to pay taxes to the IRS, which is an amount based primarily on a taxpayer's income. How much tax does each income group generally pay, and how much more or less are you paying than the rest of the American population? We have some statistical data that can shed some light on the subject.

The IRS recently released tax return statistics from 2006 (they are always a year behind because returns are always filed in the following year). The statistics include data from the 138 million plus tax returns filed in 2006 and show the income spread among American taxpayers.

The table presented below is actually two separate tables. The one on the left illustrates the top percentile of income based on the taxpayer’s income range. For example, if your adjusted gross income (AGI) is $50,000 or more, you are in the top 33.3% of income among filers in 2006.

The second chart indicates the average income tax by tax return income (AGI) range. For example, taxpayers with an AGI between $50,000 and $75,000 paid an average income tax of $5,300 in 2006. Note that this represents income tax after credits and does not include Social Security taxes, Medicare taxes, or state tax for those residing in states with an income tax.

CLICK HERE FOR THE TABLE

This data gives you a better idea of what to expect at tax season and allows you to plan ahead. With our assistance, we can ensure that you do not overlook deductions or miss tax planning opportunities to minimize your taxes. We recommend that you call for an appointment, especially if you have had a significant tax-altering event during the year. This allows us to review your tax situation and legally minimize your tax liability.

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