Income Tax Rates in the USA

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Income Tax Rates in the USA

The United States employs a progressive income tax system, where tax rates increase as income increases. This system aims to ensure that individuals and businesses contribute to federal revenues based on their ability to pay. Understanding the income tax rates and their application is crucial for taxpayers to navigate their financial obligations effectively.

Federal Income Tax Rates
The federal income tax rates in the United States are structured into several brackets, each applying to a specific range of income. As of the latest tax year, the brackets for individual filers are:

  • 10% on income up to $11,000
  • 12% on income over $11,001 up to $44,725
  • 22% on income over $44,726 up to $95,375
  • 24% on income over $95,376 up to $182,100
  • 32% on income over $182,101 up to $231,250
  • 35% on income over $231,251 up to $578,125
  • 37% on income over $578,126

    For married couples filing jointly, the brackets are

  • 10% on income up to $22,000
  • 12% on income over $22,001 up to $89,450
  • 22% on income over $89,451 up to $190,750
  • 24% on income over $190,751 up to $364,200
  • 32% on income over $364,201 up to $462,500
  • 35% on income over $462,501 up to $693,750
  • 37% on income over $693,751

    For married filing Separately, the brackets are

  • 10% on income up to $11,000
  • 12% on income over $11,001 up to $44,725
  • 22% on income over $44,726 up to $95,375
  • 24% on income over $95,376 up to $182,100
  • 32% on income over $182,101 up to $231,250
  • 35% on income over $231,251 up to $346,875
  • 37% on income over $346,876

    For Head of household, the brackets are

  • 10% on income up to $15,700
  • 12% on income over$15,701 up to $59,850
  • 22% on income over $59,851 up to $95,350
  • 24% on income over $95,351 up to $182,100
  • 32% on income over $182,101 up to $231,250
  • 35% on income over $231,251 up to $578,100
  • 37% on income over $578,101
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