United States income tax reports & details

 

United States Income tax details 

Publisher                      

Arshdeep Singh , Tanya Sharma , Ravinder Singh 

         

Individual - Taxes on personal income

The United States levies tax on its citizens and residents on their worldwide income. Non-resident aliens are taxed on their US- source income and income effectively connected with a US trade or business (with certain exceptions)

Personal income tax rates

For individuals, the top income tax rate for 2023 is 37%, except for long-term capital gains and qualified dividends (discussed below)

P.L. 115-97 reduced both the individual tax rates and the number of tax brackets. P.L. 115-97 sunsets after 2025 many individual tax provisions, including the lower rates and revised brackets, in order to comply with US Senate budget rules.

        

(Note - this blog write to collect the data  internet and other sites. So please first clearfull read after analysing fill tax)

2023 income tax rates and brackets

Single tax payer _______________________

Taxable income (USD)          tax rate (%)

_______________________________0 to 10,500                          10%

11,001 to 44,000                 12%

44,000 to 95,225                  17%

                

295,225 to 182,425               22%

182,426 to 324,575              32%

653,574 +                              37%

_______________________________

Married taxpayers filing jointly (1-2)

_______________________________

Taxable income(USD)          Tax rate%

_________________________________________

0 to 22,000                            10%

22,001 to 89,450                  12%

89,451 to 190,750                19%

190,751 to 364,200              22%

364,201 to 462,500              27%

462,501 to 693,750              33%

1. 693,751+                                36%

_______________________________

Head-of-household taxpayers (1, 2)

______________________________

Taxable income (USD)             Tax rate (%)

_____________________________________________

0 to 15,700                                   10%

15,701 to 59,850                          12%

59,851 to 95,350                           22%

95,351 to 182,100                        24%

100,101 + 221 250                        28%

Married taxpayers filing separately (1)

_____________________________________________

Taxable income (USD)     Tax rate (%)

______________________________________________

0 to 10,000                           10%

10,001 to 44,713                 12%

44,714 to 93,376                 22%

93,376 to 172,130               24%

172,131 to 231,257             32%

231,257 to 327,367              35%

327,367+                               37%

Notes

1. The maximum federal income tax rate on 'qualified dividends' received from a domestic corporation is 20%. The maximum federal tax rate on capital gains is 20% for assets held for more than 12 months. The graduated rates of tax apply to capital gains from assets held for 12 months or less.

2. Non-resident aliens may not take advantage of head of household status or joint return rates.

Medicare contribution tax

For tax years beginning after 31 December 2012, a 3.8% 'unearned income Medicare contribution' tax applies on the lesser of (i) the taxpayer's net investment income for the tax year or (ii) the taxpayer's excess modified adjusted gross income over a threshold amount (generally, USD 200,000 for single taxpayers and heads of households; USD 250,000 for a married couple filing a joint return and surviving spouses; and USD 125,000 for a married individual filing a separate return). The tax, which is in addition to the regular income tax liability, applies to all individuals subject to US taxation other than non-resident aliens. Net investment income generally includes non-business income from interest, dividends, annuities, royalties, and rents; income from a trade or business of trading financial instruments or commodities; income from a passive-activity trade or business; and net gain from the disposition of non-business property.

State and local income taxes

Most states, and a number of municipal authorities, impose income taxes on individuals working or residing within their jurisdictions. Most of the 50 states impose some personal income tax, with the exception of Alaska, Florida, Nevada, South Dakota, Texas, Washington, and Wyoming, which have no state income tax. New Hampshire and Tennessee (until 1 January 2021) tax only dividend and interest income. Few states impose an income tax at rates that exceed 10%.