How much does the average American family pay in taxes? (2024)

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How much does the average American family pay in taxes? ›

Combining direct and indirect taxes, as well as taxes from state and local government, the average American family paid $17,902 in taxes in 2021.

Monthly tax expenses

Average monthly tax amount includes federal stimulus payments that equal $159 per month, on average. The typical household pays $9,402 per year in personal taxes — 11% of our total income. This doesn't include property taxes, sales taxes, Social Security or Medicare payments.

In the United States, the average single worker faced a net average tax rate of 24.2% in 2023, compared with the OECD average of 24.9%. In other words, in the United States the take-home pay of an average single worker, after tax and benefits, was 75.8% of their gross wage, compared with the OECD average of 75.1%.

The U.S. currently has seven federal income tax brackets, with rates of 10%, 12%, 22%, 24%, 32%, 35% and 37%. If you're one of the lucky few to earn enough to fall into the 37% bracket, that doesn't mean that the entirety of your taxable income will be subject to a 37% tax. Instead, 37% is your top marginal tax rate.

An individual taxpayer is estimated to spend 13 hours and $240 out-of-pocket costs just to prepare and file one annual tax return.

With inflation impacting budgets, many are seeking ways to manage their expenses effectively. The 2022 Consumer Expenditure Survey by the Bureau of Labor Statistics reveals that the average American household's monthly expenses total approximately $6,081, equating to $72,967 annually.

The lowest tax bracket is 10%. The highest tax bracket is 37%. If you're in the middle class, you're probably in the 22%, 24% or possibly 32% tax brackets.

Although most Americans believe the middle class bears the heaviest tax burden, it's actually the top 1% who pay the highest federal tax rate, at 25.9%, the Tax Foundation analysis found.

The average annual average salary in the U.S. is $63,795. The median annual salary, which is often less skewed by outlying numbers, is $59,384. It's worth noting that average and median salaries vary quite a bit by state.

A new study by Self Financial says Americans will pay $524,625 in taxes throughout their lifetime. That's around a third of all estimated lifetime earnings – or 34.7% of an estimated $1,494,986 on various state and federal taxes.

How much does the average American make after taxes? ›

Ivory Coast

The country with beach resorts, rainforests, and a French-colonial legacy levies a massive 60% personal income tax – the highest in the world.

Overall, a third (33%) of Americans say they do their own taxes while 56% say someone else prepares their taxes.

But a new report shows just how big. A new study by Self Financial says Americans will pay $524,625 in taxes throughout their lifetime. That's around a third of all estimated lifetime earnings – or 34.7% of an estimated $1,494,986 on various state and federal taxes.

Average monthly spending on transportation: $1,025 (12% increase) Transportation is the second-largest monthly expenditure, and Americans spent 12% more on transportation in 2022 than they did in 2021.