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In 2024, federal income tax rates remain at 10%, 12%, 22%, 24%, 32%, 35%, and 37%. While these rates stay the same for 2025, the income thresholds for each bracket will adjust for inflation.
The origin of the current rate schedules is the Internal Revenue Code of 1986 (IRC), [2] [3] which is separately published as Title 26 of the United States Code. [4] With that law, the U.S. Congress created four types of rate tables, all of which are based on a taxpayer's filing status (e.g., "married individuals filing joint returns," "heads of households").
Federal, State, and Local income tax as a percent GDP Federal income, payroll, and tariff tax history Taxes revenue by source chart history US Capital Gains Taxes history In 1913, the top tax rate was 7% on incomes above $500,000 (equivalent to $15.4 million [ 97 ] in 2023 dollars) and a total of $28.3 million was collected.
There are seven tax brackets for most ordinary income for the 2023 tax year: 10 percent, 12 percent, 22 percent, 24 percent, 32 percent, 35 percent and 37 percent.
Taxable income Tax on this income Effective tax rate 0 – $18,200 Nil 0% $18,201 – $37,000 19c for each $1 over $18,200 0 – 9.7% $37,001 – $90,000 $3,572 plus 32.5c for each $1 over $37,000 9.7 – 21.9% $90,001 – $180,000 $20,797 plus 37c for each $1 over $90,000 21.9 – 30.3% $180,001 and over $54,097 plus 45c for each $1 over $180,000
For the 2023 tax year, the Earned Income Tax Credit (EITC) will increase to $7,430 for qualifying taxpayers who have three or more qualifying children, a $495 gain from $6,935 for the 2022 tax year.
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