individual income tax shares, 2013 - internal revenue service · individual income tax shares, 2013...

Highlights bull For 2013 the adjusted gross income (AGI) threshold for the top

50 percent of all individual income tax returns was $36841 for the year These taxpayers accounted for 885 percent of total AGI and paid 972 percent of total income tax

bull The top 0001 percent of tax returns had an AGI of $45097112 or more These taxpayers accounted for 19 percent of total AGI and paid 33 percent of total income tax



bull The top 3 percent of tax returns had an AGI of $231507 or more These taxpayers accounted for more than half (513 percent) of the total income tax

bull The average tax rate of 1364 percent for all returns in 2013 was the highest of this 10-year study

w w w i r s g o v t a x s t a t sStatistics of Income Bulletin | Summer 2016

by Adrian Dungan

Individual Income Tax Shares 2013

For Tax Year 2013 taxpayers filed 1383 million individual income tax returns excluding returns filed by dependents (All tables and figures included in this article are total re-

turns filed excluding dependents) The average AGI reported on these returns was $65314 down from $66444 for the previous year Total AGI decreased 01 percent to $903 trillion while total income tax increased 40 percent to $123 trillion The income tax increase was due in part to new tax rates on certain high-income taxpayers and a new net investment income tax The top marginal rate was increased from 35 percent to 396 percent while the top rate for most long-term capital gains and qualified dividends was increased from 15 percent to 20 percent Married couples filing joint returns with taxable incomes above $450000 faced these higher rates For married couples filing joint returns with AGI above $250000 and reporting investment income a new 38-percent tax was paid on this income For a more detailed description of the changes in law see the com-plete report Statistics of Incomemdash2013 Individual Income Tax Returns Publication 1304 Section 1

For Tax Year 2013 the top 0001 percent of tax returns had an AGI of $451 million or more a decrease of 273 percent from the previous year when the top 0001 percent of tax returns had an AGI of $621 million or more (Figure A) These returns accounted for 19 percent of total AGI in 2013 down from 24 percent in 2012 and as a percentage of total individual income tax these returns accounted for 33 percent of the total income tax in 2013 the same as in 2012 (Figure B) Total AGI for the 0001 percentile decreased by 229 percent from $2191 billion in 2012 to $1690 billion in 2013 As a result of this decrease returns within the top 0001 percent had an average reported AGI of $1222 million per return (Figure C)

The average tax rate for the top 0001 percent of tax returns for 2013 (241 percent) was the highest by more than 3 percent-age points (209 percent in 2009) for all years of this 10-year study The average tax rate for the top 0001 percent remained lower than the rates of all percentiles through the top 3 per-cent of returns as it has for all years of this study (Figure D) Taxpayers in the top 01 percent paid the highest average tax rate (279 percent) and each successive percentile paid lower average tax rates falling to 150 percent for the top 50 percent of returns For most years of this study (the exceptions being 2009 and 2013) the highest rate was paid at the top 1 percentile level

For 2013 taxpayers filing returns that were in the top 1 percent reported an AGI of $428713 or more a 14-percent decrease from the AGI floor for this category in 2012 ($434682) These

taxpayers accounted for 190 percent of total AGI (Figures E and F) and 378 percent of the total income tax a decrease from 381 percent in 2012

Income and Tax SharesTables 1 and 2 present statistics from 2004 through 2013 on income and tax by cumulative percentiles for returns with posi-tive AGI Excluded from the data are individual income tax re-turns filed by dependents The tables show distributions of AGI for each tax year by descending and ascending cumulative per-centiles of returns and can be used to make comparisons across cumulative percentile classes within each year Table 1 shows percentiles of returns cumulated downward starting with the highest-income returns and presents data for 14 different per-centiles from the top 0001 percent through the top 50 percent of all returns Table 2 shows percentiles of returns cumulated upward starting with the lowest-income returns and presents data for the bottom 5 percentiles 50 percent 75 percent 90 per-cent 95 percent and 99 percent of all returns

In constant dollars the AGI threshold for the top 50 percent of returns has been trending downward throughout the last 10 years from $22576 in 2004 to $20670 in 2013 (Figure G and Table 1) Conversely all percentiles from the top 10 percent

83 Summer 2016


Statistics of Income Bulletin

Figure AAdjusted Gross Income (AGI) Threshold for the Top 0001 Percent of Returns Tax Years 2004ndash2013

AGI threshold

$0

$10000000

$20000000

$30000000

$40000000

$50000000

$60000000

$70000000

2004 2005 2006 2007 2008 2009 2010 2011 2012 2013

Tax year

[1] See Table 1NOTE AGI threshold is the minimum amount of adjusted gross income needed for inclusion in each percentileSOURCE IRS Statistics of Income Division Individual Income Tax Shares January 2016

Current dollars

Constant dollars [1]

Figure BPercentage of Total Adjusted Gross Income (AGI) and Income Tax for Top Thresholds of AGI Tax Year 2013

Percentage of total AGI and income tax

90

43

19

185

82

33

0

2

4

6

8

10

12

14

16

18

20

Top 01 Top 001 Top 0001

Top percentile thresholds

AGI

Income Tax

SOURCE IRS Statistics of Income Division Individual Income Tax Shares January 2016

through the top 1 percent have a higher AGI cutoff in 2013 than they did for 2004 (Figure H and Table 1)

As expected for a graduated income tax system the top 0001 percent through the top 50 percent of returns recorded a larger share of the income tax compared to their respective share of AGI In 2013 every single percentile from the top 0001 per-cent through the top 50 percent reported a decrease in its share

of AGI and with the exception of the top 0001 percent every percentile also experienced a decrease in its share of income tax

For 2013 the top 3 percent of returns reported a 05-percent decrease in its share of total income tax which was the larg-est percentage point decrease for all percentiles in their respec-tive share of income tax (Table 1) The top 1 and 2 percent of returns both reported a 28-percent decrease in their share of

84 Summer 2016



Figure CAverage Adjusted Gross Income by Percentile Excluding Returns Filed by Dependents Tax Years 2004ndash2013[Money amounts are in current dollars]

(1) (2) (3) (4) (5)

2004 54971 91373061 22891927 5024031 1043898 2005 59080 114971933 29083260 6286542 1251801 2006 62050 132840343 32588991 6968523 1371148 2007 64995 165406179 37970449 7765246 1485826 2008 61751 130366441 29946347 6214806 1246707 2009 57146 95205128 21240160 4535545 983734 2010 59539 123501481 27146782 5502277 1123533 2011 60894 106137628 25063182 5397705 1138993 2012 66444 160960323 36844062 7473964 1452625 2013 65314 122192336 27827417 5897219 1243406

(6) (7) (8) (9) (10)

2004 657417 366190 242280 144418 95114 2005 774849 420793 272761 158503 102875 2006 843261 454437 292720 168545 108690 2007 909094 485982 311201 177858 114147 2008 779656 431589 283907 167191 108781 2009 634949 367840 250144 152549 100712 2010 711697 402300 268923 160877 105095 2011 726635 412763 276382 165188 107722 2012 898904 489555 318040 184058 118133 2013 793751 449616 299574 177906 115616SOURCE IRS Statistics of Income Division Individual Income Tax Shares January 2016

Tax year

Tax year Top50 percent

All returns Top0001 percent

Top001 percent

Top01 percent

Top1 percent

Top2 percent

Top5 percent

Top10 percent

Top25 percent

Figure DAverage Tax Rates for Top Earners Tax Years 2004ndash2013Average tax rate

17

19

21

23

25

27

29

2004 2005 2006 2007 2008 2009 2010 2011 2012 2013

Tax year

Top 001 percent

Top 01 percent

Top 1 percent

Top 1 percent

Top 2 percent

Top 3 percent

NOTE Figure is based on all individual income tax returns excluding dependentsSOURCE IRS Statistics of Income Division Individual Income Tax Shares January 2016

85 Summer 2016



Figure EAdjusted Gross Income (AGI) Thresholds in Current Dollars Tax Years 2004ndash2013AGI threshold

$100000

$150000

$200000

$250000

$300000

$350000

$400000

$450000

2004 2005 2006 2007 2008 2009 2010 2011 2012 2013

Tax year

NOTE AGI threshold is the minimum amount of adjusted gross income needed for inclusion in each percentile Figure is based on all individual income tax returns excluding dependentsSOURCE IRS Statistics of Income Division Individual Income Tax Shares January 2016

Top 1 percent

Top 2 percent

Top 5 percent

Top 10 percent

Figure FPercentage of Total Adjusted Gross Income (AGI) and Income Tax by Different Percentile Thresholds of AGI Tax Year 2013Percentile threshold

885

681

459

344

243

190

972

863

698

585

461

378

0 10 20 30 40 50 60 70 80 90 100

Top 50

Top 25

Top 10

Top 5

Top 2

Top 1

Percent of total AGI and income tax

Income TaxAGI


AGI which was the largest decrease in share of total AGI of all the percentile groups The amount of AGI needed for inclu-sion in the top 2 percent of returns (ie the AGI threshold) was $287018 and these returns accounted for nearly a quarter (243 percent) of total AGI and 461 percent of total income tax The top 50 percent of returns for 2013 (reporting AGI of $36841 or more) accounted for 885 percent of AGI and paid 972 percent of total income tax

Changes in Law and Data Sources and LimitationsSOI publishes a complete report annually that contains complete individual income tax data by tax year including sections on ldquoChanges in Lawrdquo and ldquoData Sources and Limitationsrdquo The statistics are based on a sample of individual income tax re-turns selected before audit which represents a population of Forms 1040 1040A and 1040EZ including electronic returns The report contains data on sources of income adjusted gross

86 Summer 2016



Figure GAdjusted Gross Income (AGI) Threshold for the Top 50 Percent of Returns in Constant Dollars Tax Years 2004ndash2013AGI threshold

$20000

$20500

$21000

$21500

$22000

$22500

$23000

2004 2005 2006 2007 2008 2009 2010 2011 2012 2013

Tax year

Top 50 percent of returns

NOTE AGI threshold is the minimum amount of adjusted gross income needed for inclusion in each percentile Figure is based on all returns excluding dependentsSOURCE IRS Statistics of Income Division Individual Income Tax Shares January 2016

Figure HAdjusted Gross Income (AGI) Thresholds in Constant Dollars Tax Years 2004ndash2013AGI threshold

Top 1 percent

Top 2 percent

Top 5 percent

Top 10 percent

$0

$50000

$100000

$150000

$200000

$250000

$300000

2004 2005 2006 2007 2008 2009 2010 2011 2012 2013

Tax year


87 Summer 2016



income exemptions deductions taxable income income tax modified taxable income tax credits self-employment tax and tax payments

For a detailed description of other changes in law that may affect the data in this article see the complete report Statistics of Incomemdash2013 Individual Income Tax Returns Publication 1304 Section 1 For a detailed description of the data sources and limitations see Section 2 This report is available for download

on IRS Tax Stats Webpages at httpwwwirsgovuacSOI-Tax-Stats-Individual-Income-Tax-Returns-Publication-1304-(Complete-Report)

Adrian Dungan is an economist with the Individual Returns Analysis Section Michael Weber Chief Individual Returns Analysis Section and Michael Strudler Chief Individual Research Section provided technical assistance and reviewed the article

88 Summer 2016



(1) (2) (3) (4) (5) (6) (7) (8)

Number of returns 2004 122509974 1225 12251 122510 1225100 2450199 3675299 4900399 2005 124673055 1247 12467 124673 1246731 2493461 3740192 4986922 2006 128441165 1284 12844 128441 1284412 2568823 3853235 5137647 2007 [1] 132654911 1327 13265 132654 1326549 2653098 3979647 5306196 2008 132891770 1329 13289 132892 1328918 2657835 3986753 5315671 2009 132619936 1326 13262 132620 1326199 2652399 3978598 5304797 2010 135033492 1350 13503 135033 1350335 2700670 4051005 5401340 2011 136585712 1366 13659 136586 1365857 2731714 4097571 5463428 2012 136080353 1361 13608 136080 1360804 2721607 4082411 5443214 2013 138313155 1383 13831 138313 1383132 2766263 4149395 5532526

Adjusted gross income threshold on percentiles (current dollars) 2004 NA 38780500 8455107 1617918 339993 224320 181127 156665 2005 NA 50796495 10738867 1938175 379261 245392 194726 167281 2006 NA 54665360 11649460 2124625 402603 258800 205835 176455 2007 NA 62955875 12747384 2251017 426439 270440 214832 184473 2008 NA 49546782 10097827 1867652 392513 260381 209750 181624 2009 NA 34381494 7206540 1469393 351968 243096 198731 174432 2010 NA 45039369 8762618 1634386 369691 252785 205942 179023 2011 NA 41965258 8830028 1717675 388905 262933 213441 185812 2012 NA 62068187 12104014 2161175 434682 285908 227923 196416 2013 NA 45097112 9460540 1860848 428713 287018 231507 200472

Adjusted gross income threshold on percentiles (constant dollars) [2] 2004 NA 26837716 5851285 1119666 235289 155239 125347 108419 2005 NA 34000331 7187997 1297306 253856 164252 130339 111969 2006 NA 35450947 7554773 1377837 261091 167834 133486 114433 2007 NA 39694751 8037443 1419305 268877 170517 135455 116313 2008 NA 30083049 6131043 1133972 238320 158094 127353 110276 2009 NA 20951550 4391554 895425 214484 148139 121104 106296 2010 NA 27002020 5253368 979848 221637 151550 123466 107328 2011 NA 24384229 5130754 998068 225976 152779 124021 107967 2012 NA 35346348 6892946 1230737 247541 162818 129797 111854 2013 NA 25301633 5307815 1044025 240528 161031 129886 112474Adjusted gross income (millions of dollars) 2004 6734554 111932 280449 615494 1278879 1610803 1855778 2061398 2005 7365689 143370 362581 783762 1560659 1932055 2202354 2426492 2006 7969813 170567 418573 895044 1761119 2166188 2460559 2704549 2007 8621963 219494 503678 1030091 1971021 2411916 2729468 2992467 2008 8206158 173257 397957 825898 1656771 2072196 2380698 2639100 2009 7578641 126242 281687 601504 1304627 1684139 1973637 2219853 2010 8039779 166727 366563 742989 1517146 1922058 2228360 2486918 2011 8317188 144984 342338 737251 1555701 1984960 2306674 2578137 2012 9041744 219067 501374 1017057 1976738 2446464 2791205 3078337 2013 9033840 168992 384881 815662 1719794 2195723 2550046 2847179Footnotes at end of table

Table 1 All Individual Returns Excluding Dependents Number of Returns Shares of Adjusted Gross Income (AGI) and Total Income Tax AGI Threshold on Percentiles in Current and Constant Dollars and Average Tax Rates by Selected Expanded Descending Cumulative Percentiles of Returns Based on AGI Using the Definition of AGI for Each Year Tax Years 2004ndash2013[All figures are estimates based on samples]

Descending cumulative percentiles

Item tax year Top1 percent

Top2 percent

Top001 percent

Top4 percent

Top0001 percent

Top3 percent

Total Top01 percent

89 Summer 2016



(1) (2) (3) (4) (5) (6) (7) (8)

Total income tax (millions of dollars)[3] 2004 829096 21437 59739 141937 300802 367392 409259 440979 2005 931693 27171 75151 176152 361264 437452 485042 520483 2006 1020438 30860 83499 196358 401610 485109 536823 575603 2007 1111872 38587 97979 220636 442633 534150 590292 631830 2008 1028669 33136 83085 187200 385857 470285 523500 563684 2009 863486 26328 64253 146030 313826 387828 435662 472299 2010 949144 31453 76390 169734 354810 436043 488303 528045 2011 1042571 26488 70545 168222 365518 453679 510000 553220 2012 1184978 38563 97902 220414 451328 550934 613192 660121 2013 1231911 40764 100868 227623 465705 567786 631900 680817

Average tax rate (percentage) [4] 2004 1231 1915 2130 2306 2352 2281 2205 2139 2005 1265 1895 2073 2248 2315 2264 2202 2145 2006 1280 1809 1995 2194 2280 2239 2182 2128 2007 1290 1758 1945 2142 2246 2215 2163 2111 2008 1254 1913 2088 2267 2329 2270 2199 2136 2009 1139 2086 2281 2428 2405 2303 2207 2128 2010 1181 1887 2084 2284 2339 2269 2191 2123 2011 1254 1827 2061 2282 2350 2286 2211 2146 2012 1311 1760 1953 2167 2283 2252 2197 2144 2013 1364 2412 2621 2791 2708 2586 2478 2391Adjusted gross income share (percentage) 2004 10000 166 416 914 1899 2392 2756 3061 2005 10000 195 492 1064 2119 2623 2990 3294 2006 10000 214 525 1123 2210 2718 3087 3393 2007 10000 255 584 1195 2286 2797 3166 3471 2008 10000 211 485 1006 2019 2525 2901 3216 2009 10000 167 372 794 1721 2222 2604 2929 2010 10000 207 456 924 1887 2391 2772 3093 2011 10000 174 412 886 1870 2387 2773 3100 2012 10000 242 555 1125 2186 2706 3087 3405 2013 10000 187 426 903 1904 2431 2823 3152

Total income tax share (percentage) 2004 10000 259 721 1712 3628 4431 4936 5319 2005 10000 292 807 1891 3878 4695 5206 5586 2006 10000 302 818 1924 3936 4754 5261 5641 2007 10000 347 881 1984 3981 4804 5309 5683 2008 10000 322 808 1820 3751 4572 5089 5480 2009 10000 305 744 1691 3634 4491 5045 5470 2010 10000 331 805 1788 3738 4594 5145 5563 2011 10000 254 677 1614 3506 4352 4892 5306 2012 10000 325 826 1860 3809 4649 5175 5571 2013 10000 331 819 1848 3780 4609 5129 5527Footnotes at end of table

Table 1 All Individual Returns Excluding Dependents Number of Returns Shares of Adjusted Gross Income (AGI) and Total Income Tax AGI Threshold on Percentiles in Current and Constant Dollars and Average Tax Rates by Selected Expanded Descending Cumulative Percentiles of Returns Based on AGI Using the Definition of AGI for Each Year Tax Years 2004ndash2013mdashContinued[All figures are estimates based on samples]

Item tax year Total


Top0001 percent

Top001 percent

Top01 percent

Top1 percent

Top2 percent

Top3 percent

Top4 percent

90 Summer 2016



(9) (10) (11) (12) (13) (14) (15)

Number of returns 2004 6125499 12250997 24501995 30627494 36752992 49003990 61254987 2005 6233653 12467306 24934611 31168264 37401917 49869222 62336528 2006 6422058 12844117 25688233 32110291 38532350 51376466 64220583 2007 6632746 13265491 26530982 33163728 39796473 53061964 66327456 2008 6644589 13289177 26578354 33222943 39867531 53156708 66445885 2009 6630997 13261994 26523987 33154984 39785981 53047974 66309968 2010 6751675 13503349 27006698 33758373 40510048 54013397 67516746 2011 6829286 13658571 27317142 34146428 40975714 54634285 68292856 2012 6804018 13608035 27216071 34020088 40824106 54432141 68040177 2013 6915658 13831316 27662631 34578289 41493947 55325262 69156578

Adjusted gross income threshold on percentiles (current dollars) 2004 140758 101838 72069 62794 54765 42081 32622 2005 149216 106864 74790 64821 56583 43361 33484 2006 157390 112016 77776 67291 58505 44748 34417 2007 164883 116396 80723 69559 60617 46200 35541 2008 163512 116813 80886 69813 60535 46120 35340 2009 157342 114181 79237 68216 58876 44529 34156 2010 161579 116623 80462 69126 59512 44895 34338 2011 167728 120136 82241 70492 60789 45722 34823 2012 175817 125195 85440 73354 63222 47475 36055 2013 179760 127695 87434 74955 64650 48463 36841

Adjusted gross income threshold on percentiles (constant dollars) [2] 2004 97410 70476 49875 43456 37900 29122 22576 2005 99877 71529 50060 43388 37873 29023 22412 2006 102069 72643 50438 43639 37941 29019 22320 2007 103962 73390 50897 43858 38220 29130 22409 2008 99279 70925 49111 42388 36755 28002 21457 2009 95882 69580 48286 41570 35878 27135 20814 2010 96870 69918 48239 41442 35679 26915 20586 2011 97460 69806 47787 40960 35322 26567 20234 2012 100124 71296 48656 41773 36003 27036 20532 2013 100854 71643 49055 42053 36272 27190 20670Adjusted gross income (millions of dollars) 2004 2243098 2968169 4010897 4423150 4782507 5371578 5826206 2005 2623077 3400596 4506197 4940249 5317903 5936944 6412897 2006 2918422 3759733 4947104 5412038 5815385 6474937 6980130 2007 3223396 4128240 5401825 5898437 6329354 7032507 7571084 2008 2867730 3772889 5055298 5554583 5986923 6690342 7228036 2009 2439146 3317402 4570256 5057761 5478063 6159780 6678194 2010 2716199 3631364 4927262 5430952 5864278 6564169 7095680 2011 2818879 3774978 5120188 5640585 6088552 6810489 7356627 2012 3330944 4327899 5722980 6261677 6725553 7473507 8037800 2013 3109388 4143498 5591750 6151678 6633611 7409491 7995603Footnotes at end of table




Top10 percent

Top25 percent

Top20 percent

Top30 percent

Top40 percent

Top50 percent

91 Summer 2016



(9) (10) (11) (12) (13) (14) (15)

Total income tax (millions of dollars) [3] 2004 467165 558007 659803 694983 724830 769074 797040 2005 549068 647115 755252 792545 823488 869272 898262 2006 607088 715108 832153 872385 905569 954823 985657 2007 666021 782903 909392 952964 988633 1041166 1074502 2008 597246 711873 837561 880244 915035 965691 996815 2009 502274 603504 712700 749022 777801 818789 842286 2010 560649 670319 787407 826796 858000 901560 926782 2011 588967 711663 846579 892616 929529 981800 1012460 2012 698543 831445 975377 1024046 1063388 1119368 1152063 2013 721242 859863 1011220 1062798 1104510 1163238 1197603

Average tax rate (percentage) [4] 2004 2083 1880 1645 1571 1516 1432 1368 2005 2093 1903 1676 1604 1549 1464 1401 2006 2080 1902 1682 1612 1557 1475 1412 2007 2066 1896 1683 1616 1562 1481 1419 2008 2083 1887 1657 1585 1528 1443 1379 2009 2059 1819 1559 1481 1420 1329 1261 2010 2064 1846 1598 1522 1463 1373 1306 2011 2089 1885 1653 1582 1527 1442 1376 2012 2097 1921 1704 1635 1581 1498 1433 2013 2320 2075 1808 1728 1665 1570 1498Adjusted gross income share (percentage) 2004 3331 4407 5956 6568 7101 7976 8651 2005 3561 4617 6118 6707 7220 8060 8706 2006 3662 4717 6207 6791 7297 8124 8758 2007 3739 4788 6265 6841 7341 8157 8781 2008 3495 4598 6160 6769 7296 8153 8808 2009 3218 4377 6030 6674 7228 8128 8812 2010 3378 4517 6129 6755 7294 8165 8826 2011 3389 4539 6156 6782 7320 8188 8845 2012 3684 4787 6330 6925 7438 8266 8890 2013 3442 4587 6190 6810 7343 8202 8851Total income tax share (percentage) 2004 5635 6730 7958 8382 8742 9276 9613 2005 5893 6946 8106 8507 8839 9330 9641 2006 5949 7008 8155 8549 8874 9357 9659 2007 5990 7041 8179 8571 8892 9364 9664 2008 5806 6920 8142 8557 8895 9388 9690 2009 5817 6989 8254 8674 9008 9482 9754 2010 5907 7062 8296 8711 9040 9499 9764 2011 5649 6826 8120 8562 8916 9417 9711 2012 5895 7017 8231 8642 8974 9446 9722 2013 5855 6980 8209 8627 8966 9443 9722[1] The total number of returns does not include the returns filed by individuals to only receive the economic stimulus payment and who had no other reason to file[2] For Table 1 constant dollars were calculated using the US Bureau of Labor Statistics consumer price index for urban consumers (CPI-U 1990=100) For 2013 the CPI-U=232957[3] Total income tax was the sum of income tax after credits (including the subtraction of the earned income credit American opportunity credit regulated investment credit health insurance credit and the refundable prior-year minimum tax credit) limited to zero plus the tax from Form 4970 Tax on Accumulation Distribution of Trusts[4] The average tax rate was computed by dividing total income tax (see footnote 3) by adjusted gross incomeSOURCE IRS Statistics of Income Division Individual Income Tax Shares January 2016


Item tax year


Top5 percent

Top50 percent

Top10 percent

Top20 percent

Top25 percent

Top30 percent

Top40 percent

92 Summer 2016



[All figures are estimates based on samples]

Ascending cumulative percentiles

(1) (2) (3) (4) (5) (6)

Number of returns 2004 122509974 61254987 91882481 110258977 116384475 121284874 2005 124673055 62336528 93504791 112205750 118439402 123426324 2006 128441165 64220583 96330874 115597049 122019107 127156753 2007 [1] 132654911 66327456 99491183 119389420 126022165 131328362 2008 132891770 66445885 99668828 119602593 126247182 131562852 2009 132619936 66309968 99464952 119357942 125988939 131293737 2010 135033492 67516746 101275119 121530143 128281817 133683157 2011 136585712 68292856 102439284 122927141 129756426 135219855 2012 136080353 68040177 102060265 122472318 129276335 134719549 2013 138313155 69156578 103734866 124481840 131397497 136930023

Adjusted gross income (millions of dollars) 2004 6734554 908348 2311404 3766385 4491456 5455674 2005 7365689 952792 2425440 3965094 4742612 5805030 2006 7969813 989682 2557775 4210079 5051390 6208693 2007 8621963 1050879 2723525 4493722 5398566 6650942 2008 8206158 978122 2651575 4433269 5338428 6549387 2009 7578641 900447 2520880 4261239 5139495 6274014 2010 8039779 944099 2608826 4408415 5323580 6522633 2011 8317188 960561 2676602 4542210 5498309 6761487 2012 9041744 1003944 2780067 4713845 5710800 7065006 2013 9033840 1038237 2882162 4890343 5924452 7314046

Total income tax (millions of dollars) [2] 2004 829096 32054 134114 271089 361932 528294 2005 931693 33431 139143 284578 382625 570430 2006 1020438 34781 148053 305330 413350 618828 2007 1111872 37371 158909 328969 445851 669239 2008 1028669 31857 148425 316797 431423 642812 2009 863486 21200 114465 259982 361213 549660 2010 949144 22363 122347 278824 388495 594333 2011 1042571 30109 149953 330907 453605 677052 2012 1184978 32915 160934 353533 486435 733650 2013 1231911 34307 169113 372048 510669 766206

Average tax rate (percentage) [3] 2004 1231 353 580 720 806 968 2005 1265 351 574 718 807 983 2006 1280 351 579 725 818 997 2007 1290 356 583 732 826 1006 2008 1254 326 560 715 808 981 2009 1139 235 454 610 703 876 2010 1181 237 469 632 730 911 2011 1254 313 560 729 825 1001 2012 1311 328 579 750 852 1038 2013 1364 330 587 761 862 1048Footnotes at end of table

Item tax year Total

Table 2enspAll Individual Returns Excluding DependentsenspNumber of Returns Shares of Adjusted Gross Income (AGI) and Total Income Tax and Average Tax Rates by Selected Ascending Cumulative Percentiles of Returns Based on Income Size Using the Definition of AGI for Each Year Tax Years 2004ndash2013

Bottom50 percent

Bottom75 percent

Bottom90 percent

Bottom95 percent

Bottom99 percent

93 Summer 2016





(1) (2) (3) (4) (5) (6)

Adjusted gross income share (percentage) 2004 10000 1349 3432 5593 6669 8101 2005 10000 1294 3293 5383 6439 7881 2006 10000 1242 3209 5283 6338 7790 2007 10000 1219 3159 5212 6261 7714 2008 10000 1192 3231 5402 6505 7981 2009 10000 1188 3326 5623 6782 8279 2010 10000 1174 3245 5483 6622 8113 2011 10000 1155 3218 5461 6611 8130 2012 10000 1110 3075 5213 6316 7814 2013 10000 1149 3190 5413 6558 8096

Total income tax share (percentage) 2004 10000 387 1618 3270 4365 6372 2005 10000 359 1493 3054 4107 6123 2006 10000 341 1451 2992 4051 6064 2007 10000 336 1429 2959 4010 6019 2008 10000 310 1443 3080 4194 6249 2009 10000 246 1326 3011 4183 6366 2010 10000 236 1289 2938 4093 6262 2011 10000 289 1438 3174 4351 6494 2012 10000 278 1358 2983 4105 6191 2013 10000 278 1373 3020 4145 6220[1] The total number of returns does not include the returns filed by individuals to only receive the economic stimulus payment and who had no other reason to file[2] Total income tax was the sum of income tax after credits (including the subtraction of the earned income credit American opportunity credit regulated investment credit health insurance credit and the refundable prior-year minimum tax credit) limited to zero plus the tax from Form 4970 Tax on Accumulation Distribution of Trusts[3] The average tax rate was computed by dividing total income tax (see footnote 2) by adjusted gross incomeSOURCE IRS Statistics of Income Division Individual Income Tax Shares January 2016

Table 2enspAll Individual Returns Excluding DependentsenspNumber of Returns Shares of Adjusted Gross Income (AGI) and Total Income Tax and Average Tax Rates by Selected Ascending Cumulative Percentiles of Returns Based on Income Size Using the Definition of AGI for Each Year Tax Years 2004ndash2013mdashContinued

Item tax year Total Bottom50 percent

Bottom75 percent

Bottom90 percent

Bottom95 percent

Bottom99 percent

83 Summer 2016



Figure AAdjusted Gross Income (AGI) Threshold for the Top 0001 Percent of Returns Tax Years 2004ndash2013

AGI threshold

$0

$10000000

$20000000

$30000000

$40000000

$50000000

$60000000

$70000000

2004 2005 2006 2007 2008 2009 2010 2011 2012 2013

Tax year

[1] See Table 1NOTE AGI threshold is the minimum amount of adjusted gross income needed for inclusion in each percentileSOURCE IRS Statistics of Income Division Individual Income Tax Shares January 2016

Current dollars

Constant dollars [1]

Figure BPercentage of Total Adjusted Gross Income (AGI) and Income Tax for Top Thresholds of AGI Tax Year 2013

Percentage of total AGI and income tax

90

43

19

185

82

33

0

2

4

6

8

10

12

14

16

18

20

Top 01 Top 001 Top 0001

Top percentile thresholds

AGI

Income Tax


through the top 1 percent have a higher AGI cutoff in 2013 than they did for 2004 (Figure H and Table 1)

As expected for a graduated income tax system the top 0001 percent through the top 50 percent of returns recorded a larger share of the income tax compared to their respective share of AGI In 2013 every single percentile from the top 0001 per-cent through the top 50 percent reported a decrease in its share

of AGI and with the exception of the top 0001 percent every percentile also experienced a decrease in its share of income tax

For 2013 the top 3 percent of returns reported a 05-percent decrease in its share of total income tax which was the larg-est percentage point decrease for all percentiles in their respec-tive share of income tax (Table 1) The top 1 and 2 percent of returns both reported a 28-percent decrease in their share of

84 Summer 2016




(1) (2) (3) (4) (5)

2004 54971 91373061 22891927 5024031 1043898 2005 59080 114971933 29083260 6286542 1251801 2006 62050 132840343 32588991 6968523 1371148 2007 64995 165406179 37970449 7765246 1485826 2008 61751 130366441 29946347 6214806 1246707 2009 57146 95205128 21240160 4535545 983734 2010 59539 123501481 27146782 5502277 1123533 2011 60894 106137628 25063182 5397705 1138993 2012 66444 160960323 36844062 7473964 1452625 2013 65314 122192336 27827417 5897219 1243406

(6) (7) (8) (9) (10)


Tax year



Top001 percent

Top01 percent

Top1 percent

Top2 percent

Top5 percent

Top10 percent

Top25 percent


17

19

21

23

25

27

29

2004 2005 2006 2007 2008 2009 2010 2011 2012 2013

Tax year

Top 001 percent

Top 01 percent

Top 1 percent

Top 1 percent

Top 2 percent

Top 3 percent


85 Summer 2016




$100000

$150000

$200000

$250000

$300000

$350000

$400000

$450000

2004 2005 2006 2007 2008 2009 2010 2011 2012 2013

Tax year


Top 1 percent

Top 2 percent

Top 5 percent

Top 10 percent


885

681

459

344

243

190

972

863

698

585

461

378

0 10 20 30 40 50 60 70 80 90 100

Top 50

Top 25

Top 10

Top 5

Top 2

Top 1


Income TaxAGI




86 Summer 2016




$20000

$20500

$21000

$21500

$22000

$22500

$23000

2004 2005 2006 2007 2008 2009 2010 2011 2012 2013

Tax year




Top 1 percent

Top 2 percent

Top 5 percent

Top 10 percent

$0

$50000

$100000

$150000

$200000

$250000

$300000

2004 2005 2006 2007 2008 2009 2010 2011 2012 2013

Tax year


87 Summer 2016







88 Summer 2016



(1) (2) (3) (4) (5) (6) (7) (8)







Top2 percent

Top001 percent

Top4 percent

Top0001 percent

Top3 percent

Total Top01 percent

89 Summer 2016



(1) (2) (3) (4) (5) (6) (7) (8)





Item tax year Total


Top0001 percent

Top001 percent

Top01 percent

Top1 percent

Top2 percent

Top3 percent

Top4 percent

90 Summer 2016



(9) (10) (11) (12) (13) (14) (15)







Top10 percent

Top25 percent

Top20 percent

Top30 percent

Top40 percent

Top50 percent

91 Summer 2016



(9) (10) (11) (12) (13) (14) (15)




Item tax year


Top5 percent

Top50 percent

Top10 percent

Top20 percent

Top25 percent

Top30 percent

Top40 percent

92 Summer 2016





(1) (2) (3) (4) (5) (6)





Item tax year Total


Bottom50 percent

Bottom75 percent

Bottom90 percent

Bottom95 percent

Bottom99 percent

93 Summer 2016





(1) (2) (3) (4) (5) (6)





Bottom75 percent

Bottom90 percent

Bottom95 percent

Bottom99 percent

84 Summer 2016




(1) (2) (3) (4) (5)

2004 54971 91373061 22891927 5024031 1043898 2005 59080 114971933 29083260 6286542 1251801 2006 62050 132840343 32588991 6968523 1371148 2007 64995 165406179 37970449 7765246 1485826 2008 61751 130366441 29946347 6214806 1246707 2009 57146 95205128 21240160 4535545 983734 2010 59539 123501481 27146782 5502277 1123533 2011 60894 106137628 25063182 5397705 1138993 2012 66444 160960323 36844062 7473964 1452625 2013 65314 122192336 27827417 5897219 1243406

(6) (7) (8) (9) (10)


Tax year



Top001 percent

Top01 percent

Top1 percent

Top2 percent

Top5 percent

Top10 percent

Top25 percent


17

19

21

23

25

27

29

2004 2005 2006 2007 2008 2009 2010 2011 2012 2013

Tax year

Top 001 percent

Top 01 percent

Top 1 percent

Top 1 percent

Top 2 percent

Top 3 percent


85 Summer 2016




$100000

$150000

$200000

$250000

$300000

$350000

$400000

$450000

2004 2005 2006 2007 2008 2009 2010 2011 2012 2013

Tax year


Top 1 percent

Top 2 percent

Top 5 percent

Top 10 percent


885

681

459

344

243

190

972

863

698

585

461

378

0 10 20 30 40 50 60 70 80 90 100

Top 50

Top 25

Top 10

Top 5

Top 2

Top 1


Income TaxAGI




86 Summer 2016




$20000

$20500

$21000

$21500

$22000

$22500

$23000

2004 2005 2006 2007 2008 2009 2010 2011 2012 2013

Tax year




Top 1 percent

Top 2 percent

Top 5 percent

Top 10 percent

$0

$50000

$100000

$150000

$200000

$250000

$300000

2004 2005 2006 2007 2008 2009 2010 2011 2012 2013

Tax year


87 Summer 2016







88 Summer 2016



(1) (2) (3) (4) (5) (6) (7) (8)







Top2 percent

Top001 percent

Top4 percent

Top0001 percent

Top3 percent

Total Top01 percent

89 Summer 2016



(1) (2) (3) (4) (5) (6) (7) (8)





Item tax year Total


Top0001 percent

Top001 percent

Top01 percent

Top1 percent

Top2 percent

Top3 percent

Top4 percent

90 Summer 2016



(9) (10) (11) (12) (13) (14) (15)







Top10 percent

Top25 percent

Top20 percent

Top30 percent

Top40 percent

Top50 percent

91 Summer 2016



(9) (10) (11) (12) (13) (14) (15)




Item tax year


Top5 percent

Top50 percent

Top10 percent

Top20 percent

Top25 percent

Top30 percent

Top40 percent

92 Summer 2016





(1) (2) (3) (4) (5) (6)





Item tax year Total


Bottom50 percent

Bottom75 percent

Bottom90 percent

Bottom95 percent

Bottom99 percent

93 Summer 2016





(1) (2) (3) (4) (5) (6)





Bottom75 percent

Bottom90 percent

Bottom95 percent

Bottom99 percent

85 Summer 2016




$100000

$150000

$200000

$250000

$300000

$350000

$400000

$450000

2004 2005 2006 2007 2008 2009 2010 2011 2012 2013

Tax year


Top 1 percent

Top 2 percent

Top 5 percent

Top 10 percent


885

681

459

344

243

190

972

863

698

585

461

378

0 10 20 30 40 50 60 70 80 90 100

Top 50

Top 25

Top 10

Top 5

Top 2

Top 1


Income TaxAGI




86 Summer 2016




$20000

$20500

$21000

$21500

$22000

$22500

$23000

2004 2005 2006 2007 2008 2009 2010 2011 2012 2013

Tax year




Top 1 percent

Top 2 percent

Top 5 percent

Top 10 percent

$0

$50000

$100000

$150000

$200000

$250000

$300000

2004 2005 2006 2007 2008 2009 2010 2011 2012 2013

Tax year


87 Summer 2016







88 Summer 2016



(1) (2) (3) (4) (5) (6) (7) (8)







Top2 percent

Top001 percent

Top4 percent

Top0001 percent

Top3 percent

Total Top01 percent

89 Summer 2016



(1) (2) (3) (4) (5) (6) (7) (8)





Item tax year Total


Top0001 percent

Top001 percent

Top01 percent

Top1 percent

Top2 percent

Top3 percent

Top4 percent

90 Summer 2016



(9) (10) (11) (12) (13) (14) (15)







Top10 percent

Top25 percent

Top20 percent

Top30 percent

Top40 percent

Top50 percent

91 Summer 2016



(9) (10) (11) (12) (13) (14) (15)




Item tax year


Top5 percent

Top50 percent

Top10 percent

Top20 percent

Top25 percent

Top30 percent

Top40 percent

92 Summer 2016





(1) (2) (3) (4) (5) (6)





Item tax year Total


Bottom50 percent

Bottom75 percent

Bottom90 percent

Bottom95 percent

Bottom99 percent

93 Summer 2016





(1) (2) (3) (4) (5) (6)





Bottom75 percent

Bottom90 percent

Bottom95 percent

Bottom99 percent

86 Summer 2016




$20000

$20500

$21000

$21500

$22000

$22500

$23000

2004 2005 2006 2007 2008 2009 2010 2011 2012 2013

Tax year




Top 1 percent

Top 2 percent

Top 5 percent

Top 10 percent

$0

$50000

$100000

$150000

$200000

$250000

$300000

2004 2005 2006 2007 2008 2009 2010 2011 2012 2013

Tax year


87 Summer 2016







88 Summer 2016



(1) (2) (3) (4) (5) (6) (7) (8)







Top2 percent

Top001 percent

Top4 percent

Top0001 percent

Top3 percent

Total Top01 percent

89 Summer 2016



(1) (2) (3) (4) (5) (6) (7) (8)





Item tax year Total


Top0001 percent

Top001 percent

Top01 percent

Top1 percent

Top2 percent

Top3 percent

Top4 percent

90 Summer 2016



(9) (10) (11) (12) (13) (14) (15)







Top10 percent

Top25 percent

Top20 percent

Top30 percent

Top40 percent

Top50 percent

91 Summer 2016



(9) (10) (11) (12) (13) (14) (15)




Item tax year


Top5 percent

Top50 percent

Top10 percent

Top20 percent

Top25 percent

Top30 percent

Top40 percent

92 Summer 2016





(1) (2) (3) (4) (5) (6)





Item tax year Total


Bottom50 percent

Bottom75 percent

Bottom90 percent

Bottom95 percent

Bottom99 percent

93 Summer 2016





(1) (2) (3) (4) (5) (6)





Bottom75 percent

Bottom90 percent

Bottom95 percent

Bottom99 percent

87 Summer 2016







88 Summer 2016



(1) (2) (3) (4) (5) (6) (7) (8)







Top2 percent

Top001 percent

Top4 percent

Top0001 percent

Top3 percent

Total Top01 percent

89 Summer 2016



(1) (2) (3) (4) (5) (6) (7) (8)





Item tax year Total


Top0001 percent

Top001 percent

Top01 percent

Top1 percent

Top2 percent

Top3 percent

Top4 percent

90 Summer 2016



(9) (10) (11) (12) (13) (14) (15)







Top10 percent

Top25 percent

Top20 percent

Top30 percent

Top40 percent

Top50 percent

91 Summer 2016



(9) (10) (11) (12) (13) (14) (15)




Item tax year


Top5 percent

Top50 percent

Top10 percent

Top20 percent

Top25 percent

Top30 percent

Top40 percent

92 Summer 2016





(1) (2) (3) (4) (5) (6)





Item tax year Total


Bottom50 percent

Bottom75 percent

Bottom90 percent

Bottom95 percent

Bottom99 percent

93 Summer 2016





(1) (2) (3) (4) (5) (6)





Bottom75 percent

Bottom90 percent

Bottom95 percent

Bottom99 percent

88 Summer 2016



(1) (2) (3) (4) (5) (6) (7) (8)







Top2 percent

Top001 percent

Top4 percent

Top0001 percent

Top3 percent

Total Top01 percent

89 Summer 2016



(1) (2) (3) (4) (5) (6) (7) (8)





Item tax year Total


Top0001 percent

Top001 percent

Top01 percent

Top1 percent

Top2 percent

Top3 percent

Top4 percent

90 Summer 2016



(9) (10) (11) (12) (13) (14) (15)







Top10 percent

Top25 percent

Top20 percent

Top30 percent

Top40 percent

Top50 percent

91 Summer 2016



(9) (10) (11) (12) (13) (14) (15)




Item tax year


Top5 percent

Top50 percent

Top10 percent

Top20 percent

Top25 percent

Top30 percent

Top40 percent

92 Summer 2016





(1) (2) (3) (4) (5) (6)





Item tax year Total


Bottom50 percent

Bottom75 percent

Bottom90 percent

Bottom95 percent

Bottom99 percent

93 Summer 2016





(1) (2) (3) (4) (5) (6)





Bottom75 percent

Bottom90 percent

Bottom95 percent

Bottom99 percent

89 Summer 2016



(1) (2) (3) (4) (5) (6) (7) (8)





Item tax year Total


Top0001 percent

Top001 percent

Top01 percent

Top1 percent

Top2 percent

Top3 percent

Top4 percent

90 Summer 2016



(9) (10) (11) (12) (13) (14) (15)







Top10 percent

Top25 percent

Top20 percent

Top30 percent

Top40 percent

Top50 percent

91 Summer 2016



(9) (10) (11) (12) (13) (14) (15)




Item tax year


Top5 percent

Top50 percent

Top10 percent

Top20 percent

Top25 percent

Top30 percent

Top40 percent

92 Summer 2016





(1) (2) (3) (4) (5) (6)





Item tax year Total


Bottom50 percent

Bottom75 percent

Bottom90 percent

Bottom95 percent

Bottom99 percent

93 Summer 2016





(1) (2) (3) (4) (5) (6)





Bottom75 percent

Bottom90 percent

Bottom95 percent

Bottom99 percent

90 Summer 2016



(9) (10) (11) (12) (13) (14) (15)







Top10 percent

Top25 percent

Top20 percent

Top30 percent

Top40 percent

Top50 percent

91 Summer 2016



(9) (10) (11) (12) (13) (14) (15)




Item tax year


Top5 percent

Top50 percent

Top10 percent

Top20 percent

Top25 percent

Top30 percent

Top40 percent

92 Summer 2016





(1) (2) (3) (4) (5) (6)





Item tax year Total


Bottom50 percent

Bottom75 percent

Bottom90 percent

Bottom95 percent

Bottom99 percent

93 Summer 2016





(1) (2) (3) (4) (5) (6)





Bottom75 percent

Bottom90 percent

Bottom95 percent

Bottom99 percent

91 Summer 2016



(9) (10) (11) (12) (13) (14) (15)




Item tax year


Top5 percent

Top50 percent

Top10 percent

Top20 percent

Top25 percent

Top30 percent

Top40 percent

92 Summer 2016





(1) (2) (3) (4) (5) (6)





Item tax year Total


Bottom50 percent

Bottom75 percent

Bottom90 percent

Bottom95 percent

Bottom99 percent

93 Summer 2016





(1) (2) (3) (4) (5) (6)





Bottom75 percent

Bottom90 percent

Bottom95 percent

Bottom99 percent

92 Summer 2016





(1) (2) (3) (4) (5) (6)





Item tax year Total


Bottom50 percent

Bottom75 percent

Bottom90 percent

Bottom95 percent

Bottom99 percent

93 Summer 2016





(1) (2) (3) (4) (5) (6)





Bottom75 percent

Bottom90 percent

Bottom95 percent

Bottom99 percent

93 Summer 2016





(1) (2) (3) (4) (5) (6)





Bottom75 percent

Bottom90 percent

Bottom95 percent

Bottom99 percent

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