Average Tax Rates

While the tax scale is a bit flatter after the changes in the budget, it is still a highly progressive system when you look at the overall average tax rates at various income levels.

• Those who earn up to $40,000 pay no more than 15% income tax
• Those who earn up to $70,000 pay no more than 20% income tax
• Those who earn up to $110,000 pay no more than 25% income tax

In other words 67% of taxpayers will be paying no more than 15% average income tax.

88% of taxpayers will pay no more than 20% income tax.

The top 12% of taxpayers will still pay 49% of all income tax, which I estimate is over 90% of net income tax!