Chart Detail

Effective tax rates for selected federal taxes, by income group, 1979–2007

Personal income tax Payroll tax Corporate income tax Excise tax
Income group 1979 1989 2000 2007 1979 1989 2000 2007 1979 1989 2000 2007 1979 1989 2000 2007
Bottom fifth 0.0% -1.6% -4.6% -6.8% 5.3% 7.1% 8.2% 8.8% 1.1% 0.6% 0.5% 0.4% 1.6% 1.8% 2.3% 1.6%
Second fifth 4.1 2.9 1.5 -0.4 7.7 8.9 9.4 9.5 1.2 0.8 0.6 0.5 1.3 1.2 1.4 1.0
Middle fifth 7.5 6.0 5.0 3.3 8.6 9.8 9.6 9.4 1.4 1.1 0.9 0.8 1.1 1.0 1.1 0.8
Fourth fifth 10.1 8.3 8.1 6.2 8.5 10.0 10.4 9.5 1.6 1.2 1.0 1.1 0.9 0.9 0.9 0.7
Top fifth 15.7 14.6 17.5 14.4 5.4 6.6 6.3 5.7 5.7 3.5 3.7 4.6 0.7 0.6 0.5 0.4
Top 10 percent 17.4 16.3 19.7 16.2 4.2 5.1 5.0 4.5 7.4 4.4 4.4 5.7 0.7 0.5 0.4 0.3
Top 5 percent 19.0 17.7 21.6 17.6 2.8 3.7 3.8 3.3 9.5 5.3 5.2 6.8 0.6 0.4 0.4 0.2
Top 1 percent 21.8 19.9 24.2 19.0 0.9 1.4 1.9 1.6 13.8 7.2 6.7 8.8 0.5 0.3 0.2 0.1
All 11.0 10.2 11.8 9.3 6.9 8.1 7.9 7.4 3.4 2.3 2.4 3.0 1.0 0.8 0.9 0.6

Note: Data are for comprehensive household income.

Source: Authors' analysis of Congressional Budget Office (2010)

Updated May 21, 2012

Documentation and methodology

Underlying data are from the Congressional Budget Office, Average Federal Taxes by Income Group, “Average Federal Tax Rates for All Households, by Comprehensive Household Income Quintile, 1979–2007” [Excel spreadsheet]. CBO defines individual income taxes as taxes attributed directly to households paying those taxes; social insurance (payroll) taxes are taxes attributed to households paying those taxes directly or paying them indirectly through their employers. Corporate income taxes are attributed to households according to a household’s share of capital income, and federal excise taxes are attributed to households according to their consumption of the taxed good or service.

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