Tax Day 2025 has arrived (taxes are scheduled to be before midnight if you have not filed), and it is probably safe to say that most people do not like to pay taxes. Many people feel that they are paying too much.
A Gallop pole It turned out that 60% of American taxpayers believe that their federal income tax burden is very high. With it New 2025 survey Indicates that only more than 50% of respondents feel that income taxes are inappropriate.
Therefore, as we arrive at the end of the 2025 tax season – the federal tax deadline is the highest on April 15 (although many have IRS deadline extensions) – is a good time to consider how the tax burden is distributed in the United States.
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Recent studies provide insights on which age groups contribute the most to the country’s tax revenue. So, which generation pays the most in taxes? Read on for the details.
Main contributor: 45-55 years old children pay about 30% of all income taxes
As Analysis By the Tax Foundation, the age of American taxpayers is 45 to 55, the largest part of the income tax burden.
This age group is about 29% of the total income tax paid to the federal government.
The study, which examined IRS data, indicates that individuals between the ages of 45 to 55 pay the most and experience the highest effective tax rates. ,IR Data of 2024 lack age-specific shares, but typically confirm the summit rates of 55 years of age.,
Tax rates data The National Bureau of Economic Research (NBER) confirm those findings.
The Nber model shows that the highest (and similar) average tax rates are faced in the mid -50s in the mid -40s:
- The average tax rate of 45-50 age group is 17.2%
- 50-55 group faces a slightly higher of 17.6%
Why does this age group pay so much? The answer may be a lie in their earnings.
Research by the Tax Foundation has shown that people between the ages of 45 to 55 usually occur in their extreme earning years, which is an accounting for 26% of the total adjusted gross income (AGI) of the country. (This is despite making only 18% of all federal income tax returns.)
And, such as high taxes were not enough, in the late 50s in the late 40s individuals often face additional financial burden as “sandwich generations”.
This group often supports aging parents and adult children, managing their own mid-career and economic pressures.
Tax burden from age: What about General Z taxes and retired people?
The next supreme tax-paying group is between 55 to 65 years of age, which pays about 23% of the total income tax. Two age brackets joint – 45 to 65 – Out of all taxes collected in the US contributes to more than half
The study of tax foundation on total tax burden including federal, state and local taxes provides more insight:
- Homes headed by persons between the ages of 45 to 54 face the highest average annual tax bill of $ 36,140.
- Out of this amount, $ 24,149 went to the federal government and $ 11,991 went to the state and local authorities.
- The tax burden on the age group of 45–54 is 4.3 times larger than those 75 and above, even if their average domestic income is only 2.6 times larger.
At the other end of the spectrum, young people contribute rarely to the burden.
Data suggests that only 11% of the total taxes below 35 are paid. This is despite making 35% of all tax filers. Studies suggest that low burden is mainly due to low income and possible high ratio of non-reformators in that age group.
For older adults, data suggests that tax burden decreases because individuals enter into attitude and retirement.
The study of the Tax Foundation suggests that for people above 60, the average total tax rates were less than 5% by the age of 68 and less than 2% by the age of 74.
This fall is due to a change in retirement income sources from the income allegedly mainly earned, some of which are exempted from some taxes.
A Study Pew Charitable Trusts highlighted how the aging population would shift the tax burden in the coming years. As the ratio of retired people increases, this can increase the relative burden on young workers.
Do you pay too much tax?
Many feel that the American tax system unevenly benefit the rich and corporations and overburdens. Galp surveys show that 70% of respondents believe that corporations contribute very little, a scene shared in political affiliation.
Similarly, about 60% argue that high -earnings do not pay their proper part. At the same time, 58% say that low -income houses have a lot of shoulders, which highlight concerns about uneven burden on working families.
The situation is complex: while data suggests that the top 1% account for about half of the federal income tax revenue, billionaires can often be reduced through strategies such as untaxed asset growth.
,The rich individuals and corporations often take advantage of the benefits of the tax code to reduce income tax liabilities, while their assets are often bound by shares and assets, become largely uncontrolled.,
- For example, an epidemic propluica Analysis It was found that some ultra-to-ride individuals did not pay federal income tax in a few years despite large-scale money benefits, rely on flaws for investment and corporate holdings.
- Meanwhile, other groups emphasize that medium and lower -income workers face high effective rates on wages due to parole and state taxes, which consume a large portion of their earnings.
Therefore, even though the top 1% contribute more technically to overall income tax, everyday employees pay high rates on their salary.
Payment of taxes: what you can do
If you feel that you are paying too much tax, take advantage of all tax deduction and credit, for which you are eligible and consider the following strategies to reduce your tax bill next year.
Additionally, consult a qualified and reliable tax professional or certified financial planner who can customize an approach depending on your situation.
Maximum retirement contribution: For 2025 (you will file a return in early 2026 you will file), if you are under 50, you can contribute to your 401 (K) up to $ 23,500. For those ages 50–59 or 64+, the catch-up is $ 7,500 (total $ 31,000).
A new “super catch-up” rule allows those 60-63 to contribute an additional $ 11,250, a total of $ 34,750 (if your plan permit). Those contributions can reduce your taxable income.
Roth conversion: If you are now in a bracket, but expected to be at a higher level in retirement, then you can save money by converting some of your traditional Ira into a Roth Ira.
Health Savings Accounts: HSAs allow tax-cuttingable contributions that reduce taxable income, provide tax-free growth on investment, and capable tax-free withdrawal for qualified medical expenses. 2025 boundaries: $ 4,300 (Self-Cowl) / $ 8,550 (family), with $ 1,000 catch-ups for those 55+.
FSAS: Flexible spending accounts allow you to use pre-tax dollars for healthcare or childcare cost and reduce your taxable income at the same time.
Charitable donation: This may include giving stock/funds directly to non -profit institutions and using dedicated giving accounts for advance cuts. However, to claim charitable donations, you have to do the item for cuts.
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