US Tax Statistics 2026: Income Tax, Deductions, Filing & IRS Data

Q: What is the average effective tax rate in the US?

The average effective federal income tax rate for all taxpayers is approximately 14.9%. However, this varies widely by income level: the top 1% pays an average effective rate of 24.2%, while the bottom 50% pays an average effective rate of 3.3%.

Q: How many Americans itemize deductions vs take the standard deduction?

Approximately 87.3% of tax filers take the standard deduction, while only 12.7% itemize. This shifted dramatically after the Tax Cuts and Jobs Act of 2017 nearly doubled the standard deduction. For 2025, the standard deduction is $15,000 for single filers and $30,000 for married couples filing jointly.

Q: What states have no income tax?

Nine states have no state income tax: Alaska, Florida, Nevada, New Hampshire, South Dakota, Tennessee, Texas, Washington, and Wyoming. New Hampshire and Washington do tax certain investment income. Additionally, five states have no sales tax: Alaska, Delaware, Montana, New Hampshire, and Oregon.

Q: What is the IRS audit rate?

The overall IRS audit rate for individual returns is approximately 0.44%. Higher-income taxpayers face higher rates: those earning over $1 million have about a 1.1% audit rate. The IRS has received significant new funding under the Inflation Reduction Act, which may increase audit rates for high earners.

Q: What is the average tax refund amount?

The average federal income tax refund is approximately $3,167. About 73% of all tax filers receive a refund. When e-filing with direct deposit, the average refund is received within 21 days of filing.

A comprehensive collection of United States tax statistics covering federal income tax, filing trends, deductions, capital gains, state taxes, and IRS enforcement. All data sourced from the IRS, Congressional Budget Office, and Tax Foundation.

Last updated: March 6, 202650+ statistics with sources

Key Highlights

1.The IRS collected $4.92 trillion in total federal tax revenue in FY2025
2.The top 1% of earners pay 42.3% of all federal income tax
3.87.3% of filers take the standard deduction after the TCJA changes
4.The average tax refund is $3,167, with 73% of filers receiving one
5.9 states have no state income tax, saving residents thousands annually
6.The IRS audit rate is just 0.44% overall, with a $68.2B tax gap

Federal Income Tax Statistics

The federal income tax is the largest source of US government revenue. Use our income tax calculator and tax bracket calculator to estimate your federal tax liability.

$4.92T

total federal tax revenue collected in fiscal year 2025

Source: Congressional Budget Office, FY2025

$2.18T

collected from individual income taxes (largest revenue source)

Source: IRS Data Book, 2025

37%

top marginal federal income tax rate (for income over $609,350)

Source: IRS Revenue Procedure 2025-11

14.9%

average effective federal income tax rate for all taxpayers

Source: Tax Foundation Analysis of IRS Data, 2025

24.2%

effective tax rate paid by the top 1% of earners

Source: Tax Foundation, 2025

3.3%

effective tax rate for the bottom 50% of income earners

Source: Tax Foundation Analysis, 2025

42.3%

of all federal income tax is paid by the top 1% of earners

Source: IRS Statistics of Income, 2025

$15,000

standard deduction for single filers in tax year 2025

Source: IRS Revenue Procedure 2024-40

Tax Filing Statistics & Trends

E-filing continues to dominate, with the vast majority of returns submitted electronically. Estimate your potential refund with our tax refund estimator.

162.3M

individual income tax returns filed in 2025

Source: IRS Filing Season Statistics, 2025

93.8%

of individual returns were filed electronically

Source: IRS e-File Statistics, 2025

$3,167

average federal income tax refund amount

Source: IRS Filing Season Statistics, 2025

73%

of filers received a tax refund in 2025

Source: IRS Statistics of Income, 2025

19.6M

tax extension requests filed (Form 4868) in 2025

Source: IRS Processing Statistics, 2025

55%

of taxpayers use paid preparers or tax software

Source: IRS Taxpayer Usage Study, 2025

21 days

average time to receive a refund when e-filing with direct deposit

Source: IRS Refund Processing Data, 2025

Apr 15

federal tax filing deadline (extended to Oct 15 with Form 4868)

Source: IRS, 2025

Deductions & Tax Credits Statistics

Understanding deductions and credits can significantly reduce your tax liability. Our income tax calculator factors in standard and itemized deductions to give you an accurate estimate.

87.3%

of filers take the standard deduction (vs 12.7% itemizing)

Source: IRS Statistics of Income, 2025

$30,000

standard deduction for married couples filing jointly in 2025

Source: IRS Revenue Procedure 2024-40

$22,500

standard deduction for head of household filers in 2025

Source: IRS Revenue Procedure 2024-40

31M

tax returns claimed the Earned Income Tax Credit (EITC)

Source: IRS EITC Statistics, 2025

$7,830

maximum EITC amount (with 3+ qualifying children)

Source: IRS Revenue Procedure 2024-40

$2,000

Child Tax Credit per qualifying child under 17

Source: IRS Publication 972, 2025

46M

tax returns claimed the Child Tax Credit in 2025

Source: IRS Statistics of Income, 2025

$10,000

SALT deduction cap (state and local taxes) for itemizers

Source: Tax Cuts and Jobs Act, still in effect 2025

Capital Gains & Investment Tax Statistics

Investment income is taxed differently from ordinary income. Use our capital gains tax calculator to estimate taxes on your investment gains.

20%

maximum long-term capital gains tax rate (for highest earners)

Source: IRS Tax Rate Schedule, 2025

15%

long-term capital gains rate for most taxpayers

Source: IRS Tax Rate Schedule, 2025

capital gains rate for single filers with taxable income under $48,350

Source: IRS Revenue Procedure 2024-40

$1.13T

total net capital gains reported on individual returns

Source: IRS Statistics of Income, 2025

3.8%

Net Investment Income Tax (NIIT) surcharge for high earners

Source: IRS NIIT Guidelines, 2025

$3,000

maximum net capital loss deduction per year against ordinary income

Source: IRS Publication 550, 2025

75%

of net capital gains are reported by the top 1% of earners

Source: Tax Foundation Capital Gains Analysis, 2025

State Tax Comparison Statistics

State taxes vary dramatically across the US. Check your state's rates with our sales tax calculator and factor state taxes into your total liability.

13.3%

California has the highest state income tax rate in the US

Source: Tax Foundation State Tax Data, 2025

states have no state income tax (AK, FL, NV, NH, SD, TN, TX, WA, WY)

Source: Tax Foundation, 2025

2.5%

Arizona has one of the lowest flat state income tax rates

Source: Tax Foundation State Income Tax Rates, 2025

states use a flat income tax rate instead of progressive brackets

Source: Tax Foundation, 2025

6.6%

average combined state and local sales tax rate nationwide

Source: Tax Foundation Sales Tax Data, 2025

$3,498

average state income tax paid per person in the United States

Source: Tax Foundation State Revenue Data, 2025

45.3%

Louisiana has the highest combined state and local sales tax rate (9.56%)

Source: Tax Foundation, 2025

states have no state sales tax (AK, DE, MT, NH, OR)

Source: Tax Foundation, 2025

IRS Enforcement & Audit Statistics

IRS enforcement activity and audit rates impact millions of taxpayers. Understanding these trends helps you stay compliant. Use our self-employment tax calculator to ensure accurate estimated payments.

0.44%

overall individual audit rate by the IRS

Source: IRS Data Book, 2025

1.1%

audit rate for individuals earning $1M+ annually

Source: TRAC IRS Audit Data, 2025

$104.1B

IRS budget allocated for enforcement and operations

Source: IRS Inflation Reduction Act Funding, 2025

$68.2B

gross tax gap (taxes owed but not paid on time)

Source: IRS Tax Gap Estimates, 2025

14.7M

penalty notices issued by the IRS in 2025

Source: IRS Data Book, 2025

$7.1B

collected through IRS enforcement actions

Source: IRS Enforcement Revenue, 2025

79,000

IRS employees dedicated to enforcement activities

Source: IRS Human Capital Office, 2025

failure-to-pay penalty rate per month on unpaid taxes (up to 25%)

Source: IRS Penalty Information, 2025

Federal Tax Brackets 2025

The US uses a progressive tax system with seven income tax brackets. Use our tax bracket calculator to see exactly which brackets apply to your income.

Tax Rate	Single Filers	Married Filing Jointly
10%	$0 - $11,925	$0 - $23,850
12%	$11,926 - $48,475	$23,851 - $96,950
22%	$48,476 - $103,350	$96,951 - $206,700
24%	$103,351 - $197,300	$206,701 - $394,600
32%	$197,301 - $250,525	$394,601 - $501,050
35%	$250,526 - $609,350	$501,051 - $751,600
37%	Over $609,350	Over $751,600

Source: IRS Revenue Procedure 2024-40. These are marginal rates — only income within each bracket is taxed at that rate.

Federal Revenue by Source (FY2025)

Individual income taxes are the largest component of federal revenue, followed by payroll taxes. Understanding where tax revenue comes from provides context for tax policy discussions.

Individual Income Tax$2.18T (49%)

49%

Payroll Taxes$1.57T (32%)

32%

Corporate Income Tax$492B (10%)

10%

Excise & Other$443B (9%)

Source: Congressional Budget Office, FY2025 Revenue Estimates.

Effective Tax Rate by Income Level

Due to the progressive tax system, deductions, and credits, effective tax rates differ significantly from marginal rates. Use our effective tax rate calculator to see your actual rate.

Bottom 50% (<$46K)

3.3%

50th-75th ($46K-$94K)

8.4%

75th-90th ($94K-$170K)

12.1%

90th-99th ($170K-$591K)

18.7%

Top 1% ($591K+)

24.2%

Source: Tax Foundation Analysis of IRS Statistics of Income Data, 2025. Effective rate = total income tax paid / adjusted gross income.

Frequently Asked Questions

What is the average effective tax rate in the US?

The average effective federal income tax rate for all taxpayers is approximately 14.9%. However, this varies widely by income level: the top 1% pays an average effective rate of 24.2%, while the bottom 50% pays an average effective rate of 3.3%.

How many Americans itemize deductions vs take the standard deduction?

Approximately 87.3% of tax filers take the standard deduction, while only 12.7% itemize. This shifted dramatically after the Tax Cuts and Jobs Act of 2017 nearly doubled the standard deduction. For 2025, the standard deduction is $15,000 for single filers and $30,000 for married couples filing jointly.

What states have no income tax?

Nine states have no state income tax: Alaska, Florida, Nevada, New Hampshire, South Dakota, Tennessee, Texas, Washington, and Wyoming. New Hampshire and Washington do tax certain investment income. Additionally, five states have no sales tax: Alaska, Delaware, Montana, New Hampshire, and Oregon.

What is the IRS audit rate?

The overall IRS audit rate for individual returns is approximately 0.44%. Higher-income taxpayers face higher rates: those earning over $1 million have about a 1.1% audit rate. The IRS has received significant new funding under the Inflation Reduction Act, which may increase audit rates for high earners.

What is the average tax refund amount?

The average federal income tax refund is approximately $3,167. About 73% of all tax filers receive a refund. When e-filing with direct deposit, the average refund is received within 21 days of filing.

Try Our Free Tax Calculators

Estimate your tax liability accurately with LevyIO's free calculators. All tools use current IRS rates and run entirely in your browser.

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Methodology & Sources

All statistics on this page are sourced from publicly available government data and nonpartisan tax policy organizations. Primary sources include the Internal Revenue Service (IRS) Data Book and Statistics of Income, Congressional Budget Office (CBO), Tax Foundation, and Treasury Department reports. Tax bracket amounts reflect IRS inflation adjustments published in Revenue Procedure 2024-40. Where exact figures are unavailable, we use the most recent reliable estimates with clear source attribution.

This page is updated annually when new IRS data and tax year adjustments are published. If you'd like to cite these statistics, please link to this page as the source. For corrections or updated data, contact us.