🇺🇸 U.S. Federal Income Tax Guide: 2025 Tax Year

U.S. Tax System Overview

The U.S. federal income tax system is progressive, meaning higher earners pay a higher **marginal tax rate**. Taxes are managed by the **Internal Revenue Service (IRS)**. This guide focuses on the rates for the **2025 Tax Year** and provides estimates applicable to various filers, based on your filing status.

⚠️ **Official Tax Advice Disclaimer:** This guide provides estimates and educational information only. It does not replace the advice of a qualified U.S. tax professional. Please consult the **Official IRS Website** for official forms, publications, and final figures.

2025 Federal Income Tax Brackets (Marginal Rates)

The seven federal tax rates in 2025 are: 10%, 12%, 22%, 24%, 32%, 35%, and 37%. These are the **marginal tax rates** that apply to your *taxable income*.

Source: IRS Inflation Adjustments for Tax Year 2025.

2025 Standard Deductions

Your **Taxable Income** is your Adjusted Gross Income (AGI) reduced by the Standard Deduction (or itemized deductions). The 2025 Standard Deduction amounts are:

• **Single Filers:** ...
• **Married Filing Jointly:** ...
• **Head of Household:** ...
• **Married Filing Separately:** ...

Mandatory Payroll Taxes (FICA)

FICA taxes, which fund Social Security and Medicare, are separate from income tax.

• **Social Security:** 6.2% paid by the employee on wages up to $\$176,100$.
• **Medicare:** 1.45% paid by the employee on all wages.

Sales and Consumption Tax (Not VAT)

The U.S. does not levy a federal Value Added Tax (VAT) or Goods and Services Tax (GST). Consumption tax is handled entirely at the state and local level.

• **Application:** Sales tax is only charged to the final consumer at the point of sale.
• **Tax Recovery:** Unlike VAT, the U.S. Sales Tax system does not have an input tax credit mechanism for businesses on purchases for business use.
• **Jurisdictions:** There are over 13,000 U.S. sales tax jurisdictions across the country, with rates set by states, counties, and cities.