U.S. Workers at the Average Wage Paid 24.3% of Gross Pay in Income Taxes and Employee Social Security Contributions in 2025
The Fact
The OECD's Taxing Wages 2026 report found that a single U.S. worker with no children earning the average wage — $73,520 in 2025 — paid 24.3% of gross wages in income taxes and employee social security contributions (16.7% income tax and 7.7% employee contributions). Counting the employer's share, the total tax wedge was 30.0% of labor costs.
What This Means
That is about $17,865 a year, or roughly $1,490 a month, before rent or groceries. Rent on a modest one-bedroom (BSF-0030) works out to about $1,520 a month — so the average worker's monthly tax bill is about the same as a modest apartment.
Why It Matters
Most budget advice starts with take-home pay. The gap between what you earn and what you take home is one of the biggest bills you have.
Sources
OECD. Taxing Wages 2026, Overview. https://www.oecd.org/en/publications/taxing-wages-2026_3a5169ef-en/full-report/overview_d93131c3.html
(Monthly figures calculated by The Broadside; one-bedroom rent derived from the $29.19 housing wage in BSF-0030 at 30% of income.)