what is federal income tax 
the u s federal income tax is levied by the internal revenue service irs on the annual earnings of individuals corporations trusts and other legal entities federal income taxes apply to all forms of earnings that make up a taxpayer s taxable income including wages salaries commissions bonuses tips investment income and certain types of unearned income 12in the u s federal income tax rates for individuals are progressive meaning that as taxable income increases so does the tax rate federal income tax rates range from 10 to 37 as of 2024 and kick in at specific income thresholds 3 the income ranges to which the rates apply are called tax brackets income that falls within each bracket is taxed at the corresponding rate 