Read why some states are considering imposing a flat tax rate that isn't adjusted by income

The US officially adopted an income tax in 1913

The US first levied income taxes during the Civil War, but modern income taxes became an American fixture in 1913. Two years earlier, Congress passed the 16th Amendment to give the government the right to tax individuals' and businesses' income. The US still technically levies the same federal income tax now as it did then—though it's evolved.

States with the highest (and lowest) tax rates

WalletHub researchers evaluated not just income taxes but real estate, sales, and other levies in order to rank every state by its total effective local and state tax rate (not including federal). Alaska scored the lowest total tax rate and Illinois...

What America's 1% pays in taxes, by state

In the US, the top 1% of earners contribute 45% of all personal income taxes collected nationwide. But not all states are created equal when it comes to income tax. Some states are more dependent on the 1% than others for tax revenue. SmartAsset recently examined IRS tax return data to determine exactly how much the top 1% of earners in each state paid in taxes. Find your state here.

Since 1913, Americans have paid income taxes at varying rates

In the 2020s, the top marginal tax rate has floated around 37%, relatively lower than previous eras. Some have called for boosting the rate significantly to tax the highest earners.

Only 5 states have inheritance taxes

Unlike estate taxes, inheritance taxes paid by the beneficiary of the estate (the person who inherits the deceased person's financial assets). The federal government doesn't levy an inheritance tax, but five states do. They all have varying tax rates and rules.

Understanding the low corporate tax rate in the US

Corporate taxes, which make up roughly a third of the federal government's revenue, have been calculated using a flat 21% rate since the Tax Cuts & Jobs Act of 2017. The current rate is considered low both by historic standards (it averaged over 50% in the 1950s and 1960s) and compared to other countries.

Visualizing US state taxes in seven charts

Ever wondered how your state’s tax system compares to others? Here’s an overview of the US state tax system based on seven visualizations.

Some policymakers take issue with long-term capital gains being taxed at a preferential rate compared to income from paid work

The concept of taxing unrealized capital gains—when an asset’s value increases but has yet to be sold—has been increasingly debated. Other policymakers in recent years have supported lowering the highest long-term capital gains tax rate and are generally opposed to levying taxes on unrealized capital gains.

Learn how tax brackets actually work

The US has a series of tax brackets which grow progressively larger based on the amount of income a taxpayer makes. Contrary to common belief, most people don't pay just one tax bracket, but all of them progressively until they reach their income.

A rising number of Social Security beneficiaries are taxed on their Social Security income

That’s because while Social Security benefits increase with wages and inflation, the income limits for taxing those benefits stay the same and don’t adjust over time.

25% of US households had no regular income as of 2024

Some states had higher shares of no-income households than others: West Virginia, for instance, had a national high of 34% of households with no income. These states tend to have older populations, higher rates of disability, and lower median incomes overall. In such contexts, a larger portion of households rely on non-earned income sources or report no income during the survey period.

See every time the minimum wage has been raised

Unlike some other nations, the US minimum wage isn’t tied to inflation. So instead of it automatically rising alongside the cost of living, Congress has to vote to raise the minimum wage every time they think it’s necessary.

Tipped workers in ‘$2.13 states’ experience an estimated 18.5% poverty rates

In so-called “equal treatment states,” where tipped workers are subject to the normal federal minimum wage or higher rather than the tipped minimum wage, the poverty rate is 11.1%.

Driving forces behind pay transparency laws

Since 2018, pay transparency laws have been enacted in more than a few states and cities across the US. But what’s driving the trend, from a legal perspective? This law review article attempts to answer that question, citing factors such as the Great Recession and the gender pay gap—click here to learn more.

27 states have right-to-work laws

That means employees in those states can choose whether or not to join a union at their workplace. Right-to-work laws also make it optional for employees in unionized workplaces to pay fees associated with union membership.

Read about the tax implications of remote work's increasing popularity

Tax complications can arise when a remote employee opts to work from a state where their employer had not previously done business. Demand for remote jobs has remained high since the pandemic accelerated remote work's popularity.

Rhode Island plans to impose a ‘Taylor Swift tax’ on second homes

Starting in the summer of 2026, the state will impose a new property tax surcharge on second homes valued at, or over, $1M that aren’t used as primary residences. Some are calling it the “Taylor Swift tax,” given that Rhode Island is home to the pop star’s gargantuan historic beach house.

Some US states are now revising their happy hour bans

While states like Massachusetts started banning happy hour in the 1980s as an anti-overconsumption measure, not every state has kept these bans intact. This article dives into the arguments for and against revising the happy hour ban in Massachusetts, the first state to institute such a ban.

How to owe nothing on your federal tax return

Do you know you can avoid owing the IRS money come tax season by making changes to your W-4? For context, a W-4 is the form you fill out when you first start a new job. It tells your new company how much money to withhold from each paycheck for taxes. Find out how to avoid writing a check to the IRS each April in this article.

Read about what happened when one woman started filing income taxes again

Even though she was 35 and had a 14-year-old son, Gabriela Gallegos's mother had claimed her as a dependent on her tax forms for roughly a decade. After that particularly tumultuous ten-year span of Gallegos's life came to a close, she decided to file income taxes again.

Alaska's sovereign wealth fund pays people to live in the state through an annual dividend

While the US doesn't operate a federal sovereign wealth fund, several states run SWFs—the most well-known being the Alaska Permanent Fund. Unlike most SWFs, the Alaska Permanent Fund sends cash payments averaging roughly $1.2K each directly to Alaskan residents each year.

US states have reported over $25B in tax revenue from recreational cannabis sales and medical marijuana

Colorado and Washington became the first states to allow the sale of cannabis products in 2014. Since then, many more states have legalized marijuana in some capacity—and it's been a boon for state budgets. California now regularly collects more than $1B in marijuana tax revenue each year, for instance.

Calculate how much of your tax dollars go to each federal program based on your income, filing status, and number of children

16 states impose term limits on their legislatures

As of 2025, 16 states limit how long lawmakers can serve, usually capping tenure at eight to 12 years in one chamber or across both chambers combined. Most of these limits stem from a 1990s reform wave aimed at curbing career politicians.

9 states still offer prepaid tuition plans

Prepaid tuition plans, a type of 529 plan that locks in tuition rates when opened, are only offered in nine states for new enrollment. In addition to the nine states’ plans, there’s also a national plan for a network of 300 private colleges.

Hawaii is the only US state with no incorporated municipalities

Unlike every other state, Hawaii has no cities or towns. Its four county governments manage all local services—the functions that municipalities provide elsewhere in the US—across the entire state.

See this overview of the firework rules across all 50 states, ranging from a complete ban on non-professional fireworks in Massachusetts to states with more lax rules like Indiana.

The price of gas is a composite made up of several different factors, with the federal gas tax making up less than 20% of what drivers pay at the pump.

While the first exchange-traded fund (a 'basket' of different assets that can be bought and sold on a stock exchange) in the US only launched in 1993, the global ETF market has grown to more than $10T in the short time since.

The US Constitution is widely regarded as the longest-standing written national constitution still in force—see how it has influenced rights worldwide.

44% of Americans say they pray at least once a day—discover how your state's religiosity stacks up against the rest of the country.

Despite being favored by 87% of Americans, Congress does not have term limits.

In 2026, Finland was named the world's happiest country for the ninth consecutive year based on its wealth, social safety network, and high life expectancy, among other factors.

Mark Twain spent decades feuding with the US Postal Service, convinced its costs and regulations were bureaucratic overreach.

View the ten deadliest tornadoes in US history.

Legendary architect Frank Lloyd Wright designed the SC Johnson headquarters in Wisconsin, aiming to make a cathedral-like workplace

See a ranking of the best (and worst) Federal Reserve Chairs since 1914 out of the 16 men and women who have held the office since.

US consumers collectively owe more than $1T to credit card companies—almost as much as they owe in auto loans.

US housing costs have risen by roughly 175% between 1991 and 2026—but a growing number of Gen Zers are becoming homeowners anyway. In 2025, 4% of homebuyers were Gen Z, up from 3% the year before.

Some coin denominations have ridges etched on their sides, partly to prevent counterfeiting, in a practice called 'reeding.'

Art theft is the third-largest source of criminal revenues worldwide, thanks in part to the subjective nature of valuing a work of art.

Warren Buffett's former professor Benjamin Graham is known as the 'father of value investing,' a strategy in which investors seek to buy stocks trading below their intrinsic worth.

Netflix profits when you're not watching, and its movies are designed that way—read a detail-rich critical essay exposing lesser-known Netflix takes

Recent research found that the brain doesn't seem to massively rewire following amputation—upending earlier beliefs about the cause of phantom limb pain.

One disco producer saw 'Star Wars' four times on its opening weekend and was so inspired that he recorded the album 'Star Wars and Other Intergalactic Funk,' which produced a chart-topping single.

The Brothers Grimm were lawyers before they were storytellers, but became interested in fairy tales as they began investigating how rules and customs had been passed down through cultures.

The history of many kitchen appliances involves unexpected discoveries and applications, including wartime radar turned hamster defroster and replacing an 'ice king' with heat-stealing boxes.

Pure water does not conduct electricity because this flow of energy requires the movement of charged particles, and water is a neutral molecule.

For centuries, it was common to sleep in two shifts: a few hours at the beginning of the night, and a longer period beginning around midnight

Poison ivy can cause rashes year-round since all parts of the plant contain urushiol, the oil that triggers our allergic response.