What is the tax rate in the United States?
Recently, global economic and tax policies have become hot topics, especially the tax rate issue in the United States. This article will introduce the U.S. tax rate system in detail, including personal income tax, corporate income tax, sales tax, etc., and analyze it based on the latest data.
1. U.S. personal income tax rates
The personal income tax in the United States adopts a progressive tax rate system, which is divided into different brackets according to income levels. The following is the personal income tax rate table for 2023:
| Income range (USD) | Tax rate (%) | Applicable people |
|---|---|---|
| 0-11,000 | 10 | single |
| 11,001 - 44,725 | 12 | single |
| 44,726 - 95,375 | 22 | single |
| 95,376 - 182,100 | 24 | single |
| 182,101 - 231,250 | 32 | single |
| 231,251 - 578,125 | 35 | single |
| 578,126 and above | 37 | single |
Note: The tax brackets for married people filing jointly are different from those for singles. For details, please refer to the official documents of the United States Internal Revenue Service (IRS).
2. U.S. corporate income tax rates
After the 2017 tax reform, the U.S. federal corporate income tax rate dropped from 35% to 21%. The following are key data on U.S. corporate income taxes:
| Business type | Tax rate (%) | Remarks |
|---|---|---|
| C Corporation | 21 | federal tax rate |
| S Corporation | 0 | Profits are directly included in shareholders’ personal income tax |
| Limited Liability Company (LLC) | 0 | Profits are credited directly to members’ personal income tax |
In addition, states may also impose state corporate income taxes, with rates ranging from 0% to 12%.
3. U.S. sales tax rate
Sales tax in the United States is levied by state and local governments, and rates vary by region. Here are the sales tax rates in some states:
| State name | State Sales Tax (%) | Average local sales tax (%) | Comprehensive tax rate (%) |
|---|---|---|---|
| california | 7.25 | 1.43 | 8.68 |
| new york | 4.00 | 4.52 | 8.52 |
| texas | 6.25 | 1.94 | 8.19 |
| Florida | 6.00 | 1.05 | 7.05 |
4. Other taxes
In addition to the above major taxes, the United States also includes the following taxes:
1.capital gains tax: A tax on profits from the sale of assets, with rates divided into short-term (same as ordinary income tax rates) and long-term (0%, 15% or 20%).
2.property tax: levied by local governments, the tax rate varies by region, usually 1%-3% of the property value.
3.inheritance tax: The federal estate tax rate is 18%-40%, with a threshold of $12.92 million (2023).
5. Recent hot topics and controversies
Recently, hot topics in U.S. tax policy include:
1.minimum corporate tax: The Biden administration is pushing for a global minimum corporate tax deal aimed at preventing tax avoidance by multinational companies.
2.rich tax: Some lawmakers have proposed imposing higher taxes on billionaires to narrow the gap between rich and poor.
3.State tax differences: Differences in tax rates across states spark discussions about business location and resident relocation.
Summary
The U.S. tax rate system is complex and multi-layered, with federal, state and local government tax policies varying. Personal income tax, corporate income tax and sales tax are the main taxes, while capital gains tax, property tax, etc. also have far-reaching impacts. Tax fairness and the world's lowest corporate tax have become hot topics recently. For more detailed information, it is recommended to consult the official websites of the Internal Revenue Service (IRS) or state tax authorities.
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