Federal Income Tax — Definition and What It Means for Your Income
The progressive tax levied by the U.S. government on income, with rates from 10% to 37%.
Federal income tax is collected by the IRS based on a progressive bracket system, with rates ranging from 10% to 37% depending on income level and filing status. This applies uniformly regardless of which state you live in.
Source: IRS Revenue Procedure 2025-28
Why it matters
Federal income tax is the largest tax deduction for most workers and is identical regardless of location — only state and local taxes vary by location.
Example
For 2026, a single filer's first $11,925 of taxable income is taxed at 10%, the next portion up to $48,475 at 12%, and so on through higher brackets.
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FAQ
Federal Income Tax — FAQ
Does federal income tax vary by state?
No. Federal income tax rates and brackets are the same nationwide — only state and local taxes vary by location.