With tax season in full swing for millions of Americans, roughly 77.5 million households, or an estimated 45.3%, will pay no federal income tax, according to data for the 2015 tax year and reported by Catey Hill of MarketWatch.
The Tax Policy Center, a nonpartisan Washington-based research group, analyzed the data and noted that this does not necessarily mean these 77.5 million Americans households won’t owe their states income tax.
Roughly half pay no federal income tax because they have no taxable income, and the other roughly half get enough tax breaks to erase their tax liability, explains Roberton Williams, a senior fellow at the Tax Policy Center.
On average, those in the bottom 40% of the income spectrum end up getting money from the government. Meanwhile, the richest 20% of Americans, by far, pay the most in income taxes, forking over nearly 87% of all the income tax collected by Uncle Sam.