Individual Taxes on Personal Income United State medium.com

The USA levies tax on its residents & citizens on their worldwide income. Non-resident aliens are taxed on their UnitedStates-source income and income effectively connected with a United States trade or business.

Personal income tax rates

For individuals, the top income tax rate for 2020 is 37%, except for long-term capital gains and qualified dividends (discussed below).

P.L. 115–97 reduced both the individual tax rates and therefore the number of tax brackets. P.L. 115–97 sunsets after 2025 many individual tax provisions, including the lower rates and revised brackets, so as to suits United States Senate budget rules.

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