Taxes in the United States
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.