Table 6.
Average tax rates in groups defined by U.S. income quintile boundaries
| Q1: <$27K | Q2: $27K–$44K | Q3: $44K–$65K | Q4: $65K–$96K | Q5: >$96K | |
|---|---|---|---|---|---|
| Average Tax Rate (%) | |||||
| United States | 5 | 10 | 14 | 19 | 29 |
| United Kingdom | 3 | 11 | 18 | 22 | 23 |
| Australia | 0 | 7 | 14 | 19 | 26 |
| Canada | 6 | 17 | 23 | 26 | 33 |
| Gap Relative to Q3 (percentage points) | |||||
| United States | –9 | –4 | ref. | 5 | 15 |
| United Kingdom | –15 | –7 | ref. | 4 | 5 |
| Australia | –14 | –7 | ref. | 5 | 12 |
| Canada | –17 | –6 | ref. | 3 | 10 |
Notes: Tax rates are the mean percentage of total gross household income (including transfer payments) that is paid in income tax and social insurance payments by households in each income group, calculated from the LIS data. Gaps are expressed in percentage points.