Taxes in the United States are levied by federal, state, and local governments. They are used to fund public services including infrastructure, defense, education, and healthcare.
Federal Taxes
- Income Tax – progressive rates ranging from 10% to 37% in 2025.
- Payroll Taxes – fund Social Security and Medicare.
- Corporate Taxes – applied to business profits.
- Excise Taxes – applied to specific goods such as fuel and alcohol.
State and Local Taxes
- Sales Tax – ranges from 0% (in states like Delaware) to over 7%.
- Property Tax – assessed at the local level to fund schools and services.
- State Income Tax – varies; some states like Florida and Texas have none.
Tax Filing
Most individuals file annually with the Internal Revenue Service (IRS). Deadline: April 15 each year (extended if it falls on a weekend/holiday).
Average Household Tax Burden
| Tax Type | Average Share of Household Income (2025) |
|---|---|
| Federal income tax | 13% |
| Payroll tax | 7% |
| State/local taxes | 10% |
Government Resources
FAQs
Q: When are taxes due in the U.S.? A: April 15, unless extended.
Q: Do all states have an income tax? A: No, states like Texas, Florida, and Nevada do not.
Q: What happens if you do not file taxes? A: Penalties, fines, and possible legal action by the IRS.