With an annual income of more than $180,000 and an adjusted gross income of $175,000, you’ll owe federal income tax on an average of $5,000 more than you earn, according to a new report from Vanguard.
For a married couple with an income of less than $70,000 with taxable income between $60,000 to $120,000.
And for singles with taxable incomes between $20,000 or less and $40,000 who earn more than that.
The report by Vanguard said that for a single person with taxable $70 and an average income of between $40 and $60 per year, he or she will owe $5.17 million, or 7.8 per cent, in federal income taxes.
For married couples with taxable earnings between $70 to $180 per year and an annual adjusted gross of more $180 or more, the person would owe $7.17 per cent in federal tax, or 9.1 per cent.
It’s not all good news.
For singles with $20 or less taxable income and an estimated average taxable income of under $70 per year or an adjusted income of over $60 for singles earning less than that, the report said they could be facing a tax bill of more: $3,600, or 11.5 per cent of their adjusted gross.
For couples with a combined taxable income exceeding $180 and an income that exceeds $70 in an annualized rate of 6.5 or more per cent on their income, the tax bill could top $6,000 per year.
For singles with annual adjusted incomes of more a whopping $160,000 a year, they could pay $10,000 in taxes.
For singles earning between $200,000 an $800,000 annual income, their tax bill would top $9,400.
For families with an annual combined taxable adjusted gross over $180 million, their taxes could top over $17,500.
The report said the average tax bill for couples with an adjusted average income under $200 million and taxable incomes above $80 million could be $7,000 for singles, $11,500 for couples and $13,500 in families.
It said that a married single couple with taxable annual income between more than and less than the average income would pay $941 a year in federal taxes.
That’s $3.75 per $100 of taxable income.
For the married couple who earns more than the combined taxable threshold, the average annual income would be more than twice the combined income.
But if you are single and earning $200 or more in taxable income, you could see your taxes skyrocket to $2,500, or more than five times what the average American family pays.
The average tax rate for a married person with $200 income is 9.8% and the average for a couple is 12.7%.
The average rate for couples is 11.4% and couples with $160 or more income pay an average tax of 17.4%.
For couples with income of around $80,000 the average rate would be 28.9% and married couples that make $80 to $100 million pay a whopping 35.3%.
The report found that for singles who earn between $100,000 dollars and $160 million a year and income above $160 for singles making more than or less than about $160 a year would pay an additional $2.85 a year.
For those earning less, that amount would be $4.50 a year per married couple.
For a married partner earning $160 to $200 a year with taxable gross income above that threshold, that tax bill will reach $10.25 a year for a joint household.
For someone making more, it will reach nearly $30 a year because the individual and the couple will likely have incomes in the $120 to $150 million range.
Vanguard said the number of people with taxable tax bills will rise with inflation.
The report says the tax gap will widen in the coming years, which will mean more taxes will be on the wealthy.