Top Earners Shoulder the Bulk of U.S. Income Tax Burden
In a striking illustration of America’s progressive tax system, a relatively small slice of the population—those in the top 10% of earners—continues to pay a disproportionately large share of federal income taxes.
As of 2024, only 13.1 million households qualified as top earners, roughly 10% of the nation’s 131 million total households. To make the cut, a household needed to earn at least $234,769 annually, while individual filers required a minimum income of around $150,000.
While the top 10% comprises a modest portion of American households, their economic influence is substantial. Members of this income bracket earn significantly more than the average U.S. worker and pay a significant share of total federal income taxes. According to recent tax data, the top 10% is responsible for over 70% of all federal income taxes collected.
The wealth and tax responsibility of the top 1% are even more concentrated. As of 2022, this elite group included just 1.31 million households and 1.78 million individual workers.
The income threshold for entry was steep—around $787,712 annually—and significantly higher in affluent states like California, Connecticut, and Massachusetts, where it exceeded $1 million. In contrast, states with lower living costs, like West Virginia, had thresholds closer to $420,000.
