United States Tax Rates
The United States operates a progressive federal income tax system administered by the Internal Revenue Service (IRS), with seven tax brackets ranging from 10% to 37%. In addition to federal taxes, most states and some localities impose their own income, sales, and property taxes, creating a multi-layered tax structure. The U.S. taxes its citizens and resident aliens on worldwide income regardless of where they live, making it one of only two countries with citizenship-based taxation.
Top Income Tax Rate
37%
Corporate Tax Rate
21%
VAT / Sales Tax
0%
Capital Gains Tax
20%
Detailed Tax Information
Income Tax Brackets
The United States imposes a progressive federal income tax with seven brackets for the 2026 tax year. These rates apply to taxable income after deductions and exemptions. The standard deduction for single filers in 2026 is $16,100 ($32,200 for married filing jointly). Separate bracket thresholds apply for married filing jointly, married filing separately, and head of household filers. Most states also levy their own income taxes, with rates and structures varying widely—Alaska, Florida, Nevada, New Hampshire, South Dakota, Tennessee, Texas, Washington, and Wyoming have no state income tax on wages.
| Income Range | Tax Rate |
|---|---|
| $0 – $12K | 10% |
| $12K – $50K | 12% |
| $50K – $106K | 22% |
| $106K – $202K | 24% |
| $202K – $256K | 32% |
| $256K – $641K | 35% |
| $641K+ | 37% |
Corporate Tax
The United States imposes a flat 21% federal corporate income tax rate on all C corporations, enacted under the Tax Cuts and Jobs Act (TCJA) of 2017. This replaced the previous graduated rate structure that topped out at 35%. The U.S. corporate tax applies to worldwide income of domestic corporations, with foreign tax credits available to mitigate double taxation. Pass-through entities such as S corporations, partnerships, and LLCs are not subject to corporate tax—instead, their income flows through to owners' individual returns.
Standard Rate
21%
Capital Gains Tax
Short-term capital gains on assets held one year or less are taxed as ordinary income at rates up to 37%. Long-term capital gains on assets held for more than one year are taxed at preferential rates of 0%, 15%, or 20% depending on taxable income. Single filers pay 0% on long-term gains up to $47,025, 15% up to $518,900, and 20% above that threshold. The 3.8% Net Investment Income Tax may apply on top of these rates for high-income taxpayers, bringing the effective maximum long-term rate to 23.8%.
Short-Term Rate
37%
Long-Term Rate
20%
VAT / Sales Tax
The United States does not impose a federal value-added tax (VAT) or national sales tax. Instead, sales taxes are levied at the state and local level. Forty-five states and the District of Columbia impose statewide sales taxes, with rates ranging from 2.9% (Colorado) to 7.25% (California). When combined with local sales taxes, total rates can exceed 10% in some jurisdictions. Five states—Alaska, Delaware, Montana, New Hampshire, and Oregon—have no statewide sales tax, though Alaska allows local sales taxes. Sales taxes generally apply to tangible personal property and some services, with exemptions commonly granted for groceries, prescription medications, and clothing in certain states.
Standard Rate
0%
Cryptocurrency Tax
The IRS treats cryptocurrency and digital assets as property for federal tax purposes. Selling, trading, or using crypto to purchase goods or services triggers a taxable capital gains event. The same short-term and long-term capital gains rates that apply to stocks and other capital assets apply to crypto. Mining and staking rewards are treated as ordinary income at the time of receipt, valued at fair market value. Crypto received as payment for goods or services is also taxed as ordinary income.
Tax Treaties
The United States has a network of approximately 65 bilateral income tax treaties in force, designed to prevent double taxation and reduce tax evasion. These treaties typically reduce or eliminate withholding taxes on cross-border dividends, interest, and royalties. Standard U.S. treaty benefits often reduce dividend withholding to 15% (or 5% for substantial corporate shareholders) and interest and royalty withholding to 0–10%. Treaty benefits are claimed using Form W-8BEN (for individuals) or W-8BEN-E (for entities). The U.S. also participates in tax information exchange agreements (TIEAs) and is a signatory to the FATCA intergovernmental agreements with over 100 jurisdictions.
Treaty Network
65
Double taxation agreements
Major treaty partners:
Key Details
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