Editing Taxation in the United States (section)

===Graduated tax rates===
[[File:Progressive effective tax burden.pdf|thumb|right|upright=1.35|Progressive effective tax burden]]

Income tax rates differ at the federal and state levels for corporations and individuals. Federal and many state income tax rates are higher (graduated) at higher levels of income. In addition, federal and many state individual income tax rate schedules differ based on the individual's filing status. For example, the income level at which each rate starts generally is higher (''i.e.'', tax is lower) for married couples filing a joint return or single individuals filing as head of household.

Individuals are subject to federal graduated tax rates from 10% to 37%.<ref>{{USC|26|1}}; IRS [Publication 17], page 266.</ref> Corporations are subject to a 21% federal rate of tax. Prior to 2018, the effective date of the [[Tax Cuts and Jobs Act of 2017]], corporations were subject to federal graduated rates of tax from 15% to 35%; a rate of 34% applied to income from $335,000 to $15,000,000.<ref name="26 USC 11; IRS Publication 542">{{USC|26|11}}; IRS Publication 542.</ref> State income tax rates, in states which have a tax on personal incomes, vary from 1% to 16%, including local income tax where applicable. Nine states do not have a tax on ordinary personal incomes.  These include Alaska, Florida, Nevada, South Dakota, Texas, Washington, and Wyoming. {{Main|State income tax}} [[State and local tax deduction|State and local taxes]] are generally deductible in computing federal taxable income for taxpayers who itemize their deductions; however, the [[Tax Cuts and Jobs Act of 2017]] limited the maximum amount of the deduction to $10,000 for individuals and married couples from 2018 through 2025.