More Than Half of American Households Paid No Federal Income Tax Last Year
Covid-relief Funds, Tax Credits, Stimulus Lowered Tax Obligations
IRS Data Shows 59.9 Percent of Households Paid Income Tax in 2022
More than half of American households did not pay any federal income tax last year, according to data from the Internal Revenue Service (IRS). The IRS reported that 59.9 percent of U.S. households paid no individual income tax in 2022. This is a significant increase from 2020, when 52.9 percent of households did not pay federal income tax.
The increase in the number of households not paying federal income tax is likely due to the various COVID-19 relief measures implemented by the government in 2020 and 2021. These measures included stimulus payments, expanded tax credits, and increased unemployment benefits. These measures helped to reduce the tax liability for many households, and some households may have even received a refund from the IRS.
The IRS data also shows that the percentage of households not paying federal income tax varies significantly by age. Only 11 percent of those age 25-55 do not pay federal income tax, while more than 80 percent of those age 75 or older are non-payers.
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