Taxes on $1 Million: Why a Banker Will Pay More Than a Plumber

Not all millionaires are created equal — at least according to the IRS.

These days the biggest factor determining what high earners owe the government is how they make their money. And, for the rich and middle class alike, salaried professionals tend to pay far higher rates than other Americans with equivalent incomes.

Take a banker pulling down a $1 million salary. She can easily owe more than $300,000 in federal payroll and income taxes this year, according to calculations by Eric Scaringe, a partner at the accounting firm UHY LLP. That’s $60,000 more than business owners, and $100,000 more than ...