In 2026 a single filer making $97,000 in salary or wages will pay an effective tax rate of about 12.9%.
About 83% of the country earns no more than $97,000/year.
The single filer who takes $97,000 in income exclusively from long term investments, however, will pay an effective tax rate of only about 4.9%, a rate 62% lower.
In 2021, 20% of tax filers did not report any wage or salary income.
In 2026, such people can receive income from long term capital gains up to $545,500 and pay an effective tax rate of only about 18% vs. a single filer earning that much in salary or wages who pays an effective rate of about 29.6%.
In 2Q2025 the top 10% by wealth in America owned 87.2% of the stocks and mutual funds.
