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The tax system in the United States is complex and multi-layered, with various taxes imposed at the federal, state, and local levels, each with its own rates and regulations. In this guide, we will cover federal income tax, payroll tax, and sales tax rates in the US. Additionally, we'll explain how Tam Accounting can assist with tax matters in the United States.

Tam Accounting specializes in tax and accounting services in America. The company’s owner, Yesim Deretam, holds the highest IRS license, IRS Enrolled Agent, and is also a certified tax planning expert in the United States. Tam Accounting provides comprehensive accounting services and tax planning for anyone earning income in the United States, both domestically and internationally.

Income Tax

Federal Income Tax in the US

Income tax in the US is collected at both the federal and state levels. Federal income tax is administered by the IRS, and tax rates vary based on income levels. State income tax rates are determined by state governments and can differ significantly from one state to another.

Federal Income Tax Rates

Federal income tax rates vary based on the annual income of taxpayers. The tax brackets increase progressively from lower to higher income groups. The federal income tax rates for 2024 are as follows:

Single Filers

  • 10%: $0 - $11,600
  • 12%: $11,601 - $47,150
  • 22%: $47,151 - $100,525
  • 24%: $100,526 - $191,950
  • 32%: $191,951 - $243,725
  • 35%: $243,726 - $609,350
  • 37%: $609,351 and above

Married Filing Jointly

  • 10%: $0 - $23,200
  • 12%: $23,201 - $94,300
  • 22%: $94,301 - $201,050
  • 24%: $201,051 - $383,900
  • 32%: $383,901 - $487,450
  • 35%: $487,451 - $731,200
  • 37%: $731,201 and above

Married Filing Separately

  • 10%: $0 - $11,600
  • 12%: $11,601 - $47,150
  • 22%: $47,151 - $100,525
  • 24%: $100,526 - $191,950
  • 32%: $191,951 - $243,725
  • 35%: $243,726 - $365,600
  • 37%: $365,601 and above

Head of Household

  • 10%: $0 - $16,550
  • 12%: $16,551 - $63,100
  • 22%: $63,101 - $100,500
  • 24%: $100,501 - $191,950
  • 32%: $191,951 - $243,700
  • 35%: $243,701 - $609,350
  • 37%: $609,351 and above

State Income Tax

State income tax rates vary from state to state. For example, states like California and New York have high income tax rates, while states like Florida and Texas do not impose an income tax. State income tax rates and regulations depend on the state you reside in.

Tax Returns and Taxes Owed

Taxpayers are required to file federal and state tax returns annually. A tax return provides detailed information about the income earned and the taxes owed. It is important to be accurate and complete when filing a tax return. Tam Accounting offers professional support in preparing tax returns and managing tax obligations.

Payroll Tax

Social Security and Medicare Taxes

Payroll tax in the US includes Social Security and Medicare taxes. Social Security tax funds retirement, disability, and survivor benefits. Medicare tax funds the health insurance program. The Social Security tax rate is 6.2%, and the Medicare tax rate is 1.45%.

Federal and State Payroll Taxes

Federal payroll tax is calculated based on the employee's income and is collected by the IRS. State payroll tax rates are determined by state governments and can vary from state to state. Payroll taxes are withheld by the employer and paid on behalf of the employee.

Tax Refunds

In some cases, employees may receive a refund of a portion of the taxes they have paid. Tax refunds are calculated after the annual tax return is filed and are issued by the IRS or the state tax agency. To receive a tax refund, it is essential to file a correct and complete tax return.

Sales Tax

Sales Tax in the US

Sales tax in the US is applied at the state and local levels. Sales tax is a tax on the sale of goods and services. Each state and local government has different sales tax rates. For example, the sales tax rate in California is 7.25%, while Oregon does not impose a sales tax.

Sales Tax Rates

Sales tax rates are determined by state and local governments. Some states apply different sales tax rates for specific goods and services. Sales tax rates can vary based on the economic situation and budget needs of the state.

Tax Obligations

Sales tax filers are required to correctly calculate and collect sales tax. They must also file a sales tax return and remit the collected taxes to the state or local tax agency. Tam Accounting provides professional support in sales tax calculation, collection, and filing.

Tax Rates and Systems in the US

Federal and State Tax Systems

The tax system in the United States operates at both the federal and state levels. The federal tax system is administered by the IRS and includes federal income tax, payroll tax, and various other taxes. State tax systems are managed by each state's tax agency and include state income tax, sales tax, and other local taxes.

Tax Rates and Tax Brackets

Tax rates and tax brackets vary based on the income level of taxpayers and the tax policies of the state. Federal tax rates are progressive, increasing with higher income levels. State tax rates depend on the state's tax laws and economic conditions.

Social Security Number and Tax Identification Number

Individuals working and paying taxes in the US must have a Social Security Number or a Tax Identification Number. The Social Security Number is used to determine an employee’s social security benefits and collect payroll taxes. The Tax Identification Number is used by businesses and individuals for tax returns and other tax-related activities.

Tax Obligations for Non-Residents and Foreigners

Non-Resident Tax Obligations

Non-residents working in the US are required to pay taxes on the income they earn. Non-resident taxpayers must pay federal and state income tax on the income earned in the US. Additionally, Social Security and Medicare taxes may also apply.

Tax Obligations for Foreigners

Foreign individuals living or working in the US are required to pay taxes on the income they earn. Foreign taxpayers must file a tax return and report the income they earn. Tam Accounting provides tax planning and accounting services for foreign taxpayers.

J-1 and Other Visa Types

Individuals with a work permit in the US must pay taxes on the income they earn during their working period. Those with temporary work visas, such as J-1 visas, are required to pay federal and state income taxes during their working period. Social Security and Medicare taxes may also apply.

Tax Consultancy with Tam Accounting

Tax Planning and Accounting Services

Tam Accounting offers expert consultancy services in tax planning and accounting in the US. We provide professional support in preparing tax returns, managing tax obligations, and financial reporting. Additionally, we offer strategic tax planning services to minimize your tax liabilities.

Legal Compliance and Consultancy

Tam Accounting helps ensure taxpayers’ legal compliance by assisting with obtaining necessary documents and permits. We offer consultancy services to comply with tax laws and manage tax obligations.

Financial Planning and Management

Tam Accounting offers financial planning and management services to manage your financial situation most effectively. We provide expert support in budgeting, cash flow management, and financial analysis.

Risk Management and Insurance

Tam Accounting provides risk management and insurance solutions to minimize the risks your business may encounter. We take necessary measures to ensure the security and sustainability of your business.

Strategic Planning and Growth

Tam Accounting offers strategic planning and growth consultancy services for the long-term success of your business. We provide expert support in entering new markets, expanding your product or service range, and developing growth strategies.


This comprehensive guide aims to answer all your questions about US tax brackets and tax rates. Learn about the tax system in the US, income tax, payroll tax, sales tax, and more. At Tam Accounting, we offer expert services in tax matters in the US. For more information and consultancy, contact us.

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