Exclusion of employer-provided health insurance: Benefit as a percent of after-tax income
| Income bracket | Exclusion of employer-provided health insurance |
|---|---|
| Bottom 20% | 0.1% |
| 21–40th | 1 |
| Middle 20% | 1.7 |
| 61–80th | 1.7 |
| 81–90th | 1.8 |
| 91–95th | 1.6 |
| 96–99th | 1.3 |
| Top 1% | 0.4 |
Source: Tax Policy Center
Tax Policy Center, Individual Income Tax Expenditures [online database], Table T18-0155, October 2018. Data are for 2018. The figure includes both employers’ contributions to health insurance for employees not counted as income for employees and employees’ contributions that are subtracted from their earnings when filing tax returns. As a share of income, benefits are low for the bottom 20% because a small share of these households have access to employer-based health insurance. Benefits are a small share of income for the top 1% because these households’ incomes are so large and there is only so much employer-provided health care these households need to consume.
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