Funding the Federal Government
February 27, 2025
The IRS collected a little more than $4 trillion in net taxes (after refunds) in fiscal year 2023. About half was individual income taxes, and around 35% was employment (payroll) taxes, including Social Security, Medicare, unemployment insurance, and railroad retirement. Business income taxes made up a little over 10% of the total, with relatively small contributions from excise, estate and trust income, and estate and gift taxes.
Tax sources, in billions
Individual income: $2,048 – 50.8%
Employment: $1,421 – 35.2%
Business income: $413 – 10.2%
Excise: $72 – 1.8%
Estate & trust income: $47 – 1.2%
Estate & gift: $34 – 0.8%
Source: Internal Revenue Service, April 2024
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