How US Income Tax Works (2024)
The United States uses a federal progressive income tax with seven marginal rates from 10% to 37%. Your rate depends on taxable income after the standard deduction ($14,600 single / $29,200 married filing jointly) and any credits. State income tax is separate and ranges from 0% to 13.3%.
| Rate | Single filer | Married filing jointly |
|---|---|---|
| 10% | $0–$11,600 | $0–$23,200 |
| 12% | $11,601–$47,150 | $23,201–$94,300 |
| 22% | $47,151–$100,525 | $94,301–$201,050 |
| 24% | $100,526–$191,950 | $201,051–$383,900 |
| 32% | $191,951–$243,725 | $383,901–$487,450 |
| 35% | $243,726–$609,350 | $487,451–$731,200 |
| 37% | Over $609,350 | Over $731,200 |
- →Social Security: 6.2% on wages up to $168,600 — employees pay half, employers pay the other half
- →Medicare: 1.45% on all wages plus 0.9% surtax above $200,000
- →Child Tax Credit: $2,000 per qualifying child under 17, phases out above $200k ($400k MFJ)
- →401(k) contributions (up to $23,000/year) reduce taxable income dollar-for-dollar
- →Self-employed pay 15.3% SE tax but deduct half before calculating income tax
- →9 states have no income tax: Alaska, Florida, Nevada, New Hampshire, South Dakota, Tennessee, Texas, Washington, Wyoming