OTHER INFORMATION (UNAUDITED) 208 

United States Government 

Other Information (Unaudited) for the 

Years Ended September 30, 2022, and 2021 

Tax Burden 

The IRC provides for progressive tax rates, whereby higher earned income is generally subject to higher tax rates. The 

following tables present the latest available information on income tax and related income, deductions, and credit for 

individuals by income level, and for corporations by size of assets. 

Individual Income Tax Liability for Tax Year 2020 

Average Average 

Total Adjusted Income Income 

Number of Adjusted Income Gross Tax per Tax as a 

Taxable Gross Income Tax per Return Return Percentage 

Returns (In millions (In millions (In whole (In whole of Adjusted 

Adjusted Gross Income (In thousands) of dollars) of dollars) dollars) dollars) Gross Income 

Under $15,000 ................. 31,045 232,112 491 7,477 16 0.2%

$15,000 under $30,000 ..... 29,265 655,347 12,849 22,394 439 2.0%

$30,000 under $50,000 ..... 29,930 1,173,046 50,346 39,193 1,682 4.3%

$50,000 under $100,000 ... 36,983 2,635,417 192,163 71,260 5,196 7.3%

$100,000 under $200,000 . 22,415 3,060,066 334,648 136,519 14,930 10.9%

$200,000 under $500,000 . 7,615 2,187,229 366,794 287,226 48,167 16.8%

$500,000 or more ............. 1,845 2,923,397 753,251 1,584,497 408,266 25.8%

 Total ............................. 159,098 12,866,614 1,710,542 
 209 OTHER INFORMATION (UNAUDITED) 

Corporate Income Tax Liability for Tax Year 2019 

Percentage of 

Income Subject Total Income Tax Income Tax After 

Total Assets to Tax After Credits Credits to 

(In thousands of dollars) (In millions of dollars) (In millions of dollars) Taxable Income 

Zero assets ................................... 26,676 5,240 19.6% 

$1 under $500 ............................... 8,235 1,669 20.0% 

$500 under $1,000 ........................ 5,279 1,080 20.5% 

$1,000 under $5,000 ...................... 18,004 3,629 20.2% 

$5,000 under $10,000 .................... 11,642 2,281 19.6% 

$10,000 under $25,000 .................. 15,884 3,122 19.7% 

$25,000 under $50,000 .................. 14,549 2,821 19.4% 

$50,000 under $100,000 ................ 16,588 3,166 19.1% 

$100,000 under $250,000 .............. 25,381 4,781 18.8% 

$250,000 under $500,000 .............. 25,573 4,652 18.2% 

$500,000 under $2,500,000 ........... 111,437 19,156 17.2% 

$2,500,000 or more ....................... 1,453,939 205,533 14.1% 

 Total ......................................... 1,733,187 257,130 

Tax Gap 

The gross tax gap is the difference between the amount of tax imposed by law and what taxpayers actually pay on time. 

The tax gap provides an estimate of the level of overall noncompliance and voluntary compliance during the relevant tax 

periods. Tax gap estimates provide periodic appraisals about the nature and extent of noncompliance for use in formulating 

tax administration strategies. Estimating the tax gap is inherently challenging and requires assessing the merits of alternative 

methods, assumptions, and data sources. There is no single approach that can be used for estimating all the components of the 

tax gap, so multiple methods are used. The most recent estimates covering the Tax Year 2014-2016 timeframe were released 

in FY 2022. 

The gross tax gap is the amount of a tax liability that is not paid voluntarily and on time. The estimated annual average 

gross tax gap is $496.0 billion. The gross tax gap is comprised of three components: non-filing, underreporting, and 

underpayment. The estimated gross tax gap for each of these components is $39.0 billion, $398.0 billion, and $59.0 billion, 

respectively. The gross tax gap estimates are also segmented by type of tax: individual income tax, corporation income tax, 

employment tax, and estate and excise tax. The estimated gross tax gap for each of these types of tax is $357.0 billion, $41.0 

billion, $93.0 billion, and $5.0 billion, respectively. 

The net tax gap is the gross tax gap less tax that subsequently will be paid either late through voluntary payments or 

collected through IRS administrative and enforcement activities and is the portion of the gross tax gap that will not be paid. It 

is estimated that $68.0 billion of the gross tax gap will eventually be paid resulting in a net tax gap of $428.0 billion. The net 

tax gap estimates are also segmented by type of tax: individual income tax, corporation income tax, employment tax, and 

estate and excise tax. The estimated net tax gap for each of these types of tax is $306.0 billion, $34.0 billion, $87.0 billion, 

and $2.0 billion, respectively. 1

 For additional information on the tax gap, refer to Treasury’s financial statements. 

 

1

 Individual amounts may not add to totals due to rounding.