The number of federal income tax filers in the US

In 2022, roughly 150 million individual federal income tax returns were filed in the United States. That number includes people who filed because they owed tax, people who filed to claim refunds, and people who filed even though they had no tax liability. The actual count changes year to year based on population, employment, and income levels.

Not everyone who works files a federal income tax return. The IRS sets a filing threshold — a minimum income level below which you do not have to file. That threshold depends on your age, filing status, and type of income. A single person under 65 with only wage income, for example, does not have to file unless their gross income exceeded $13,850 in 2023. The threshold is higher for people over 65 and for married couples filing jointly.

The number of people who actually owe federal income tax is smaller than the number who file. Many filers have no tax liability because their income falls below the threshold, because they claim deductions that reduce their taxable income to zero, or because tax credits they are may have access to to exceed what they owe.

Key Takeaways

  • About 150 million federal income tax returns were filed in 2022, but this includes people with no tax liability who filed anyway.
  • The IRS filing threshold — the income level at which you must file — varies by age and filing status and changes each year.
  • Roughly 40 percent of tax filers owe no federal income tax because their income, deductions, or credits reduce their liability to zero.
  • Self-employed people, gig workers, and people with investment income may have to file even if their total income is below the standard threshold.

Who counts as a taxpayer

The term "taxpayer" can mean different things depending on context. The IRS counts anyone who files a federal income tax return as a tax filer. But not all filers are taxpayers in the sense of owing money — many file to claim refunds or because they are required to report income even though they owe nothing.

People who actually owe federal income tax are a subset of all filers. The Treasury Department and the IRS track this separately. In recent years, roughly 60 percent of tax filers have had a positive tax liability — meaning they owed money after accounting for deductions and credits. The other 40 percent owed nothing.

Self-employed people and gig workers are counted as filers even if their net income is low, because they must report business income to the IRS. The same applies to people with investment income, rental income, or other sources beyond wages. These groups may file even when their total income is below the standard filing threshold.

Why the filing threshold matters

The filing threshold is the income level at which the IRS requires you to file a return. It is not the same as the tax rate or the point at which you start owing tax. You can have income above the threshold and still owe nothing if deductions and credits reduce your liability to zero.

The threshold changes each year because it is tied to inflation. In 2023, a single person under 65 had to file if their gross income was $13,850 or more. For a married couple filing jointly, both under 65, the threshold was $27,700. For people 65 and older, the threshold is higher — $15,550 for a single filer in 2023.

These numbers apply only to people with wage income from a job. If you are self-employed, you must file if your net business income is $400 or more, regardless of age or other income. If you have investment income or other sources, different rules apply.

State and local income taxes versus federal

The number of people who pay federal income tax is different from the number who pay state or local income taxes. Not all states have an income tax — nine states have no state income tax at all. In states that do tax income, the filing threshold and tax rates differ from the federal system.

A person might file a federal return but not a state return, or vice versa. Some states follow the federal filing threshold closely; others set their own. A few states tax income that the federal government does not, such as interest and dividends, even for people with low total income.

This guide focuses on federal income tax filers because that is the most commonly tracked number. State and local tax filing data varies by jurisdiction and is not centralized the way federal data is.

How the IRS counts filers

The IRS publishes annual statistics on the number of returns filed, broken down by filing status, income level, and other categories. These statistics come from the actual returns processed each year. The most recent complete data available is usually from the prior tax year, with a lag of several months while the IRS processes and analyzes the returns.

The count includes returns filed on paper and electronically. It includes amended returns filed after the original deadline. It does not include people who should have filed but did not — the IRS estimates that number separately, though the exact figure is not known.

The IRS also tracks how many returns result in refunds, how many result in payment owed, and how many show no tax liability. These breakdowns help explain why the total number of filers is much larger than the number of people who actually owe tax.

Changes in the number of filers over time

The number of federal income tax filers has grown over decades as the population has grown and more people have entered the workforce. It also fluctuates year to year based on economic conditions, employment rates, and changes to the tax code.

During recessions, the number of filers often drops because fewer people are employed or earning income. During periods of strong employment, the number rises. Changes to tax law — such as adjustments to the standard deduction or the creation of new tax credits — can also shift how many people file.

The filing threshold itself has been adjusted multiple times. When the threshold rises, fewer people are required to file. When it falls or stays flat while inflation rises, more people cross the threshold and must file.

Frequently Asked Questions

Does everyone who works have to file a federal income tax return?

No. If your income is below the filing threshold for your age and filing status, you do not have to file. However, you may want to file anyway if you had taxes withheld from your paycheck, because filing allows you to claim a refund. Self-employed people must file if their net business income is $400 or more, even if their total income is low.

What is the difference between a tax filer and a taxpayer?

A tax filer is anyone who submits a federal income tax return to the IRS. A taxpayer, in the strict sense, is someone who owes federal income tax. Many filers owe nothing because their income is too low or because deductions and credits eliminate their liability. The IRS uses "filer" and "taxpayer" differently depending on context.

If I do not owe taxes, why would I file a return?

If your employer withheld federal income tax from your paychecks, filing a return allows you to claim a refund of that money. You may also be may have access to to tax credits — such as the Earned Income Tax Credit — that you can only receive by filing. Even if you owe nothing and have no refund coming, filing may be worth doing to document your income.

How often does the IRS update the filing threshold?

The IRS adjusts the filing threshold each year for inflation. The new thresholds are announced in late fall and apply to returns filed the following spring. You can find the current year's threshold on the IRS website or in the instructions that come with the tax form.