Where Do You Rank as a Taxpayer?

Sun Dec 9, 2012 7:00pm EST

There's been plenty of debate recently about the growing disparity between rich and poor in America, and about income taxes -- who pays how much now, and who should pay more in the future, as part of prescription to narrow the burgeoning budget gap that has pushed the national debt to biblical proportions.

Undoubtedly, there are big issues here. And we think it's important for you to know where you fit in. Does your income put you in that once extolled and excoriated 1% of richest Americans? In the bottom 50% of taxpayers? Somewhere in between?

SEE OUR TOOL: Calculate Your Tax Share

And no matter where you sit, are you bearing your fair share of the nation's tax burden? Do you have a clue what portion you pay now, aside from too darn much?

To help answer such questions, we have developed a tool to show how the nation's taxable income and the country's federal income tax bill are distributed among its citizens. Are the wealthy coddled with tax favors? Is the middle class unfairly burdened? Our tool uses the latest IRS data to shine a bright light into what are too often murky shadows. We’ll also show you how your own income stacks up with that of your fellow Americans.

Are you ready to see where you fit in? With our simple calculator, enter a single number from your 2011 tax return and you’ll instantly know the answer.

What the numbers show

The latest numbers from the IRS -- based on just-released data from 2010 tax returns -- show what it takes to be among the top 1% of income earners: adjusted gross income of $369,691 or more. The 1.35 million Americans with this elite status reported 18.9% of all the country's taxable income.

That's right. One percent of taxpayers reported almost 19% of all taxable income. But that same tiny group also kicked in 37% of all the taxes paid. How much do you need to make to be in the top 50% of earners? Just $34,338.

Fall below that level and you are in the bottom half, along with nearly 70 million of your fellow taxpayers. All told, that group earned just 11.7% of the income reported on 2010 tax returns. And they coughed up 2.36% of all the income taxes paid.

Use our calculator to see if you'e in the top 1%, 5%, 10%, 25%, 50% . . . or bottom 50% of income earners.

Our income and tax-burden breakdowns come from information reported on 2010 individual income tax returns. Income categories are based on adjusted gross income.

(Note that these figures include only federal income taxes. According to one study, more than half of all wage earners pay more in Social Security and Medicare taxes than they do in income tax. The percentage of those paying more payroll tax than income tax soars to nearly 90% if you count both the employer and employee share of those levies.)

For historical perspective, back in 1986, the top 1% of earners reported 11% of all income and paid 26% of the income taxes; the lower-earning 50% made 17% of the income and paid 6% of the nation’s individual income tax bill.

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