Household after-tax income: 1985
Nelson, C.T.
Current population reports. Series P-20, Population characteristics 1987(151): 1-51
1987
ISSN/ISBN: 0363-6836 PMID: 12268943 Document Number: 353913
This report is the 6th in a series presenting estimates of household after-tax income and taxes paid by households. Data from the 1983 Annual Housing Survey, the Income Survey Development Program, and the Internal Revenue Service were combined with the March 1986 Current Population Survey data to derive the estimates shown in this report. Highlights of the data follow. 1) Mean household income after taxes was $22,650 in 1985, up by .9% over the 1984 figure after accounting for the 3.6% rise in consumer prices. The mean after-tax incomes of both white households ($23,480) and black households ($15,790) increased from 1984 to 1985. Hispanic household income ($17,920) showed no signicant change. 2) Mean after-tax income is highest in the West ($24,350); households in the Northeast had the largest increase in mean after-tax income for the period 1980-1985 (10.9%). 3) Mean after-tax incomes increased from 1984-1985 for married-couple family households with children to $28,390 and for female-maintained family households with no husband present to $13,090. There was no significant change among married-couple family households without children ($27,710). 4) Mean household income before taxes ($29,070) increased between 1984 and 1985 by 1.3% after adjusting for inflation. 5) Household paid an average of $6950 in taxes in 1985, $170 higher than the average taxes paid in 1984 after adjusting for price changes. 6) In 1985, 65% of households with incomes below the poverty level paid 1 or more of the types of taxes covered in this study. Taxes paid by poverty households amounted to 8% of the total money income received. 7) The average % of income paid in taxes ranged from 11% for households with incomes $10,000 to 29% for households with incomes of $50,000+.