The deadline for filing federal income taxes is later than usual this year. Tax Day has been pushed back to April 18 to avoid coinciding with the District of Columbia’s Emancipation Day holiday.
However, Americans don’t just pay taxes one day out of the year. Taxes are a part of our everyday lives, whether we’re conscious of it or not. Many politicians prefer that we don’t notice how much we’re taxed. And, so, taxes are often buried in the cost of products or subtly taken from our paychecks.
The largest and most recognized U.S. tax is the personal income tax. It’s the reason for Tax Day. Federal tax rates on personal income range from 10% to 37%. Forty-one states layer on additional income taxes. In places like New York City, the top combined federal, state and local income tax rate exceeds 50%.
