How did 2022 total federal tax paid by top earners compare to their share of income?
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Executive summary
Top earners paid far more than their share of income in federal income taxes in 2022: the top 1% paid roughly 40% of federal income tax receipts while earning about 20–22% of adjusted gross income (AGI) [1] [2] [3]. The top 5% and top 10% also shoulder outsized shares — the top 5% paid roughly 61% of income taxes per USAFacts and the top 10% paid about 72% — even though those groups account for a smaller share of total income [4] [3].
1. Who the “top earners” are, and the headline numbers
IRS-based summaries and analyses define the top 1% as taxpayers with AGI roughly above the mid-six‑hundreds of thousands; that group paid about 40.4% of all federal income taxes in 2022 and reported roughly 20–22% of AGI depending on the dataset used [1] [2] [3]. Visual Capitalist and related summaries put the top‑1% dollar contribution near $854–864 billion and an average income‑tax rate in the mid‑20% range (about 26.1% in some accounts) [5] [6] [7].
2. Comparing tax share to income share: the central imbalance
Multiple organizations report the same basic pattern: the top 1% pays roughly twice the share of income taxes relative to its share of income — for example, paying ~40% of income tax while earning ~20% of AGI — a gap that analysts interpret as evidence the individual income tax is strongly progressive in 2022 [3] [1] [2]. The top 5% and top 10% likewise pay far more than proportional: the top 5% paid over $1.3 trillion (about 61% of income taxes) and the top 10% accounted for 72% of income taxes while the top 25% paid 87.2% [4] [3].
3. Why those gaps exist — rates, capital gains, and base concentration
Analysts point to three mechanics: higher average statutory and effective rates at the top, concentration of income and capital‑gains realizations among high earners, and the structure of deductions/credits that reduce liabilities at lower incomes. The Tax Foundation notes the top 1% faced a much higher average income‑tax rate (23.1% in one summary, 26.1% in another visualization) than the bottom half (3.7%) in 2022 [2] [7]. Visual Capitalist and Tax Foundation graphics highlight that capital gains volatility can swing top‑end shares year‑to‑year, as seen in 2021 versus 2022 [2] [7].
4. Different metrics, different emphases — why sources don’t align perfectly
Sources use slightly different definitions and tables (AGI share, taxable income, inclusion/exclusion of payroll taxes, averaging methods), which explains variations in reported percentages and average rates: e.g., Tax Foundation reports a 23.1% average rate for the top 1% while Visual Capitalist reports 26.1% for the same cohort; both cite IRS data but select different tables/metrics [2] [7] [6]. Some outlets stress dollars paid (e.g., $863–864B), others stress shares of total receipts or average rates; the underlying IRS tables can be read multiple ways [5] [6] [3].
5. What’s omitted or underemphasized in the headlines
Most summaries focus on federal individual income tax only; payroll taxes, state taxes, and corporate taxes are often excluded, and including those would change the distribution of total tax burdens across income groups — available sources do not mention a full‑system, 2022 comparison that combines all federal and state taxes in these same tables (not found in current reporting). Also, year‑to‑year swings can be driven by capital gains realizations and pandemic‑era policy; Tax Foundation explicitly notes 2020–2021 were outliers because of pandemic effects on incomes and policy [2].
6. Competing narratives and embedded agendas
Think tanks and media frame the same IRS data differently to support policy views: National Taxpayers Union and Tax Foundation emphasize progressivity and the growing share paid by high earners as evidence the system already taxes the wealthy heavily [3] [2]. Conversely, some commentators and interactive tools highlight variation within the top 1% and effective‑tax‑rate dispersion to argue that many very high earners pay much less than headline rates [8]. Readers should note NTU and Tax Foundation have pro‑tax‑cut, pro‑low‑tax orientations, which shapes the policy emphasis in their analyses [3] [2].
7. Bottom line for readers and policymakers
In 2022 federal individual income taxes were materially concentrated at the top: the top 1% paid roughly 40% of income taxes while reporting about one‑fifth of AGI, and the top 5–10% together paid the lion’s share of receipts [1] [4] [3]. That concentration demonstrates strong progressivity in the individual income tax base but leaves open policy questions about whether progressivity should rise, fall, or be redistributed across other tax types — an assessment that requires combining these income‑tax figures with payroll, corporate, and state tax data, which the current sources do not provide (not found in current reporting).