How much is av­er­age for taxes?

USA TODAY Weekend Extra - - AMERICA’S MARKETS - John Max­field

De­spite Amer­i­cans’ ef­forts to pay as lit­tle in taxes as pos­si­ble, there’s a limit to how much one can re­duce their li­a­bil­ity.

Ac­cord­ing to a re­cent sur­vey of nearly 130,000 U.S. con­sumers, the av­er­age Amer­i­can spends $10,489 each year in fed­eral, state and lo­cal in­come taxes.

That might sound like a lot, but it’s ac­tu­ally only 14% of the av­er­age sur­vey re­spon­dent’s gross in­come.

To put that in per­spec­tive, cur­rent tax brack­ets charge from 10% of in­come up to as much as 39.6%, de­pend­ing on one’s in­come bracket.

What’s even more in­ter­est­ing about this data is that it can be bro­ken down by age group. By do­ing so, you can get a sense for when your tax li­a­bil­ity is likely to be great­est.

The data shows that the av­er­age per­son pays the most in taxes in the decade be­tween 45 and 54 years of age. Next up are peo­ple in the 35- to 44-year-old age range. Not co­in­ci­den­tally, these tend to be the ages that peo­ple earn the most money.

Once peo­ple pass age 65, their an­nual tax li­a­bil­ity plunges as they leave the work­force.

Newspapers in English

Newspapers from USA

© PressReader. All rights reserved.