The Congressional Budget Office, the U.S. Treasury, and the Tax Policy Center have all estimated that the poorest 20% of households pay an average federal tax rate of about 0%, as compared to 12% for middle-income households, 24% for the top 20%, and 30% for the richest 1%. Unlike the tax rates often cited by politicians and journalists, these figures account for nearly all forms of income and all federal taxes, including hidden taxes. They also account for all tax loopholes (aka, preferences) and reflect actual taxes paid, not theoretical rates. According to the latest Treasury Department data, the poorest 20% of households paid an average of -$527 in federal taxes in 2024, as compared to $7,425 for middle-income households, $86,540 for the top 20%, and $641,059 for the richest 1%.