Income tax act and how it affects you

Income tax forms the bulk of taxes collected by the U.S. government. Depending on individual income, the tax ranges from zero to 35% of one’s taxable income. The income tax is considered a progressive tax because the tax rate is higher as a percentage of the income for higher-income individuals.

Some state and municipal governments also impose income taxes. In addition, some states allow individual cities to impose an additional income tax.