7 federal tax brackets from 10% to 37%
USA's hidden complexity: federal 10-37% PLUS state taxes up to 13.3% (California). FICA adds 7.65%. A $100,000 California earner pays ~31% total—same earner in Texas pays ~26%. $14,600 standard deduction. US citizens taxed worldwide (even living abroad). Filing: April 15.
USA has federal rates of 10-37%—but the real story is state taxes stack on top. California adds 13.3%, New York City adds 12.7% state+city. Texas, Florida, and 7 other states charge 0%. FICA adds 7.65% (Social Security 6.2% + Medicare 1.45%). The $14,600 standard deduction (single) means effective tax-free threshold. A $100,000 earner in California pays ~$18,000 federal + $5,000 state + $7,650 FICA = ~31% total. Same earner in Texas pays ~26%. Filing deadline: April 15. US citizens taxed on worldwide income regardless of residence—unique among major nations. Use our state calculators for accurate comparisons.
| Taxable Income | Tax Rate |
|---|---|
| $0 - $11,600 | 10% |
| $11,600 - $47,150 | 12% |
| $47,150 - $100,525 | 22% |
| $100,525 - $191,950 | 24% |
| $191,950 - $243,725 | 32% |
| $243,725 - $609,350 | 35% |
| Over $609,350 | 37% |
Note: These are marginal rates - you only pay the higher rate on income within each bracket.
Source: Internal Revenue Service (IRS)
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Complex tax situation? Get matched with a licensed CPA who specializes in US federal tax.
⚠ Not for simple single-state returns. Free filing is fine for straightforward W-2 situations.
Get Matched with a CPA →Federal income tax (10-37%) is just the start. Add state income tax (0-13.3%), FICA (7.65%), and potentially local taxes. A $100,000 earner pays roughly $18,000 federal, but total varies by state: California ~31%, Texas ~26%, NYC ~33%. State choice matters as much as income level.
FICA (Federal Insurance Contributions Act) funds Social Security and Medicare. Employees pay 6.2% Social Security (on earnings up to $168,600 in 2024) plus 1.45% Medicare (no cap, plus 0.9% surcharge above $200,000). Employers match these amounts. Total: 7.65% employee + 7.65% employer. Self-employed pay both halves (15.3%).
Nine states have no state income tax: Alaska, Florida, Nevada, New Hampshire (dividends/interest only), South Dakota, Tennessee, Texas, Washington, and Wyoming. However, some compensate with higher property taxes (Texas) or sales taxes. New Hampshire taxes investment income only. Moving states can save 5-13% on income.
The 2026 standard deduction is $14,600 (single), $29,200 (married filing jointly). This reduces taxable income—effectively creating a tax-free threshold. Alternative: itemize deductions if mortgage interest, state taxes, and charitable giving exceed standard deduction. Most taxpayers (~90%) use the standard deduction for simplicity.
Yes—the USA (along with Eritrea) is unique in taxing citizens on worldwide income regardless of residence. Americans abroad must file US returns and report foreign bank accounts (FBAR). Foreign Earned Income Exclusion ($126,500 in 2024) and foreign tax credits provide some relief, but US citizenship carries lifetime tax obligations.
Last Updated: March 2026