Income taxes are taxes governments levy on money earned by businesses and individuals. What’s more, they’re also many countries’ largest source of revenue: In the US, individual income taxes made up nearly half of the federal government’s revenue in 2024, while corporate income taxes added another 11% .
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Tax avoidance isn’t the same as tax evasion. The tax code is full of legal loopholes accountants can use to lighten their clients’ tax burden. NPR shares their (and listeners’) favorite sections of the tax code in this podcast. For instance, large estates can be counted as farms and some cars count as heavy machinery. Listen to this podcast to learn about tax loopholes that range from surprising to legitimately useful.
The Internal Revenue Service is responsible for determining, assessing, and collecting internal revenue in the US. This article not only outlines how the IRS gets it all done, but also details the history of the IRS and answers frequently asked questions about the agency. Read it here.
First published in 1926, the US Code is the official codification of federal statutes in the US. Title 26 of the US Code, for instance, lists all of the federal tax laws of the United States. A new edition is published every six years. Learn why the United States Code matters with this explainer.
Taxes are a major revenue source for most countries, and how each government taxes citizens often reflects the country’s economy. Developed countries tax at much higher rates than developing ones, and as a country grows its GDP, it also typically grows the proportional percentage of taxes it gains from its citizens. To see comparisons of different countries’ taxation strategies, check out these charts.
The US’s highest marginal income tax rate is 37%. That rate is compared to other countries’ both in a map and accompanying chart. Denmark has the highest rate at nearly 56%, while a handful of countries don’t use marginal taxes at all. In the Middle East, many countries count on oil and gas to finance their governments. See how the US stacks up with this data visualization.
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.
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. Learn more about corporate taxes using see data visualizations in this article.
Tax laws are catching up to modern freelancers. Starting with income made in 2024, gig workers will have to report the earnings they receive via apps like Venmo and PayPal differently. The main change: workers will have to detail all app earnings above $5,000 (previously, it was $20,000), and that’ll eventually drop to $600. This guide explains what that’ll mean and answers common questions about the new rule.
The US government made nearly half of its total revenue last year from individual income taxes, and this year is shaping up to be similar. The US makes money from a variety of other sources, including Medicare taxes and corporate income taxes. But the deficit continues to grow: The US spent $1.82T more than it made in fiscal 2024. To learn more, check out the federal government’s revenue counter.
In 2025, about half of America will be able to file taxes directly with the IRS for free. It’s the second year of the agency’s new program, which cuts out intermediaries. Americans spend an average of $200 on tax preparation services like TurboTax and H&R Block. Though tax preparation has been free for many Americans, critics say tax companies upsell customers. Listen to a podcast about the IRS’s program.
The United States is home to more than 33 million businesses, the vast majority of which are small businesses, with millions being created (and others closing shop) every year. These businesses often rely on loans, provide the goods and services that keep the economy flowing, and sometimes even grow large enough to enter public markets or provide private investment opportunities. Explore key topics central to business and finance, from the role of the Federal Reserve to how initial public offerings work, how millions of American students finance higher education, and more.