U.S Individual Income Tax: Tax Rates for Regular Tax: Highest Bracket

IITTRHB • Economic Data from Federal Reserve Economic Data (FRED)

Latest Value

37.00

Year-over-Year Change

5.71%

Date Range

1/1/1913 - 1/1/2018

Summary

The U.S. Individual Income Tax: Tax Rates for Regular Tax: Highest Bracket trend measures the top marginal tax rate for individual income taxes in the United States. This data point is crucial for understanding the tax burden on high-income earners and its potential impact on economic behavior and government revenue.

Analysis & Context

This economic indicator provides valuable insights into current market conditions and economic trends. The data is updated regularly by the Federal Reserve and represents one of the most reliable sources for economic analysis.

Understanding this metric helps economists, policymakers, and investors make informed decisions about economic conditions and future trends. The interactive chart above allows you to explore historical patterns and identify key trends over time.

About This Dataset

The highest individual income tax bracket rate represents the maximum marginal tax rate paid by taxpayers with the highest levels of taxable income. This data series is used by economists, policymakers, and analysts to assess the progressivity of the U.S. tax system and its implications for economic incentives and government finances.

Methodology

The data is collected and published by the U.S. Federal Reserve.

Historical Context

The highest individual income tax rate is a key policy tool used by the government to influence economic activity, income distribution, and tax revenue.

Key Facts

  • The top marginal tax rate was last changed in 2018.
  • The highest income tax bracket applies to taxable income over $539,900 for individuals (2022).
  • The top marginal rate was as high as 94% during World War II.

FAQs

Q: What does this economic trend measure?

A: This trend measures the top marginal tax rate for individual income taxes in the United States, which applies to the highest level of taxable income.

Q: Why is this trend relevant for users or analysts?

A: The highest individual income tax rate is a key policy tool used to influence economic incentives, income distribution, and government finances, making it crucial for economists and policymakers to monitor.

Q: How is this data collected or calculated?

A: The data is collected and published by the U.S. Federal Reserve.

Q: How is this trend used in economic policy?

A: The top marginal tax rate is used by the government to adjust the progressivity of the tax system and manage the trade-offs between economic incentives, income distribution, and tax revenue.

Q: Are there update delays or limitations?

A: The data is published regularly by the Federal Reserve, but there may be delays in reflecting changes to the tax code.

Related Trends

Citation

U.S. Federal Reserve, U.S Individual Income Tax: Tax Rates for Regular Tax: Highest Bracket (IITTRHB), retrieved from FRED.