Policy Documents

Summary of Latest Federal Individual Income Tax Data

David S. Logan –
October 20, 2011

The income earned by the top 1 percent of Americans has declined for the second year in a row while their average tax rate has increased, according to this Tax Foundation study.

The average federal tax rate for those reporting at least $343,927 in income has increased from 22.5 percent in 2007 to 24.0 percent in 2009, while the average income for the top 1 percent declined from $1.4 million to $1 million over the same period.

The Tax Foundation's analysis is based on new data from the Internal Revenue Service on individual income taxes, reporting on calendar year 2009. The total amount of individual income tax paid declined by $166 billion, twice the decline from 2007 to 2008.