Understanding U.S. Income Tax Brackets and Rates

To determine the amount of tax owed based on income levels

To calculate the total expenses of a household

To identify the number of dependents in a family

To determine eligibility for government benefits

2023

2024

2025

2022

To compare North Carolina state income tax with other states

To calculate North Carolina state income tax for a given income

To eliminate North Carolina state income tax

To analyze North Carolina state income tax history

Taxes increase disposable income and reduce refunds

Taxes reduce disposable income and increase refunds

Taxes reduce disposable income and refunds

Taxes have no effect on disposable income or refunds

Higher incomes are taxed at lower rates.

All incomes are taxed at the same rate.

Higher incomes are taxed at higher rates.

No taxes are applied to higher incomes.

The percentage of tax you pay decreases.

The percentage of tax you pay remains the same.

The percentage of tax you pay increases.

You stop paying taxes altogether.

Most U.S. income taxes are regressive.

Most U.S. income taxes are proportional.

Most U.S. income taxes are progressive.

U.S. income taxes are not categorized.

NC Department of Revenue

Internal Revenue Service (IRS)

State Government

Local Government

Federal income tax is paid to the state government, while state income tax is paid to the U.S. government.

Federal income tax uses a flat rate, while state income tax uses tax brackets.

Federal income tax is collected by the IRS, while state income tax is collected by state departments of revenue.

Federal income tax is optional, while state income tax is mandatory.

$0 to $11,600

$11,601 to $47,150

$47,151 to $100,525

$100,526 to $191,950