Federal Income Tax

Federal income tax is levied on both personal and corporate income. The amount of tax you pay depends on the tax bracket you fall into. The federal tax brackets are structured so that individuals are taxed at different rates depending on the income that they generate. Basically, the more income you bring in, the higher the tax bracket you will be in. Federal income taxes are the primary source of the federal government’s revenue. Federal income tax currently maxes out at 35%.