The IRS tax brackets are probably the misunderstood part of the tax code. Most people think that all of their income is taxed at the highest percentage that their income throws them into. This is not true. The income tax system in the United States is a progressive tax system. That means that different parts of your income is taxed at different rates.
One of the subjects that politicians and the main street media love to push is that the rich don't pay their fair share of taxes. But is that really true? I thought I would give you some real statistics and let you decide. Here is the latest data available from the IRS for 2021, in which the tax burden on high-incomers rose:
The top 1% of individual filers paid 45.78% of all U.S. federal income taxes, although they created only 26.3% of the total adjusted income. These are people that had an AGI of more than $682,577.
The Internal Revenue Service announced today the annual inflation adjustments for tax year 2025 - in case you are planning how much money you have to hand over for them to waste next year.
The tax year 2025 adjustments described below generally apply to income tax returns to be filed starting tax season 2026. The tax items for tax year 2025 of greatest interest to many taxpayers include the following dollar amounts: