Personal Income Tax in the United States
The United States imposes a progressive federal personal income tax (PIT) system with seven brackets ranging from 10% to 37%. States also impose their own income taxes (0-13.3%). This guide covers federal and state income tax, deductions, credits, and filing requirements for 2026.
Tax Residency
An individual is considered a US tax resident if they meet either the green card test or the substantial presence test (183 days over 3 years using a weighted formula). Resident aliens are taxed on worldwide income. Non-residents are taxed only on US-source income.
Federal Personal Income Tax Rates (2026)
The US uses a progressive tax rate structure for ordinary income. Rates apply to taxable income after the standard or itemized deduction:
Single Filers
| Taxable Income | Rate |
|---|---|
| $0 - $11,600 | 10% |
| $11,601 - $47,150 | 12% |
| $47,151 - $100,525 | 22% |
| $100,526 - $191,950 | 24% |
| $191,951 - $243,725 | 32% |
| $243,726 - $609,350 | 35% |
| Over $609,350 | 37% |
Married Filing Jointly
| Taxable Income | Rate |
|---|---|
| $0 - $23,200 | 10% |
| $23,201 - $94,300 | 12% |
| $94,301 - $201,050 | 22% |
| $201,051 - $383,900 | 24% |
| $383,901 - $487,450 | 32% |
| $487,451 - $731,200 | 35% |
| Over $731,200 | 37% |
Standard Deduction (2026)
- Single: $15,000
- Married Filing Jointly: $30,000
- Head of Household: $22,500
State Income Tax
State income tax rates vary from 0% in states like Texas, Florida, and Nevada to a top rate of 13.3% in California. Some states use flat rates while others have progressive brackets. State taxes are deductible against federal income for those who itemize (subject to the $10,000 SALT cap).
Deductions and Credits
Itemized Deductions
- Mortgage interest on primary and secondary residences
- State and local taxes (SALT) capped at $10,000
- Charitable contributions
- Medical expenses exceeding 7.5% of AGI
Key Tax Credits
- Child Tax Credit: Up to $2,000 per qualifying child
- Earned Income Tax Credit (EITC): For low-to-moderate income workers
- American Opportunity Tax Credit: Up to $2,500 for education
- Lifetime Learning Credit: Up to $2,000 per return
- Child and Dependent Care Credit
Filing Requirements
- Federal Tax Return: Due April 15 following the tax year
- Extension: Automatic 6-month extension available (file by October 15)
- Estimated Tax Payments: Quarterly for self-employed individuals (April 15, June 15, September 15, January 15)
- State Returns: Separate filing required for most states
Penalties
- Late filing: 5% of unpaid tax per month (max 25%)
- Late payment: 0.5% of unpaid tax per month (max 25%)
- Failure to pay estimated tax: Underpayment penalty based on federal rate
- Accuracy-related penalty: 20% of underpayment
- Fraud: 75% of underpayment plus criminal prosecution