🧠 Calquify Intelligence
United States income tax: 7-band system with a top rate of 37%
The Income Tax applies a 7-band progressive structure. The entry rate of 10% applies to income up to $12.400. The top rate of 37% applies above $640.601.
Source: United States Income Tax official rates 2026
Corporate Tax: effective rate of 21% for 2026
The Corporate Tax applies at 21%. Flat 21% federal rate since 2018 TCJA. State corporate taxes apply additionally and vary by state.
Source: United States Corporate Tax official rates 2026
Statutory minimum wage of $7,25/hour - United States's mandatory hourly wage floor
United States's statutory minimum wage is $7,25 gross per hour from 1 January 2026. Many states and localities set higher minimum wages. See state datasets for state-level values. United States sets the legal minimum as an hourly floor, not a fixed statutory monthly wage. This is the mandatory minimum for employees and forms the baseline for salary planning in United States.
Source: United States labour authority
2025 inflation at 2,9% - the key index for United States wage and cost planning
U.S. Bureau of Labor Statistics recorded 2,9% annual CPI inflation in 2025. This figure is directly relevant for United States wage negotiation benchmarks, benefit indexation and cost-of-living planning in 2026. Salary increases below 2,9% represent a real-terms pay reduction. Household budgeting for rent, food and utilities should account for the cumulative effect of recent inflation across 4 years.
Source: U.S. Bureau of Labor Statistics
United States Income Tax Rates by Band 2026 (%)
United States tax authority
United States Corporate Tax Rates 2026 (%)
Corporate Tax
📋 Reference Data
United States 2026 Income Tax Bands (Income Tax)
United States tax authority - official 2026 rates
| Band | Taxable income range | Rate | Applies to |
|---|---|---|---|
| Income tax band 1 | $0 - $12.400 | 10% | All taxpayers within this income range |
| Income tax band 2 | $12.401 - $49.840 | 12% | All taxpayers within this income range |
| Income tax band 3 | $49.841 - $106.250 | 22% | All taxpayers within this income range |
| Income tax band 4 | $106.251 - $202.850 | 24% | All taxpayers within this income range |
| Income tax band 5 | $202.851 - $257.540 | 32% | All taxpayers within this income range |
| Income tax band 6 | $257.541 - $640.600 | 35% | All taxpayers within this income range |
| Income tax top rate | Above $640.601 | 37% | All taxpayers within this income range |
ⓘ Marginal rates shown. Effective rates are lower due to credits and deductions.
United States 2026 Corporate Tax Rates (Corporate Tax)
United States tax authority - official 2026 corporate tax rates
| Rate type | Profit range | Rate | Tax name |
|---|---|---|---|
| Federal corporate income tax rate | All taxable profit | 21% | Corporate Tax |
ⓘ Flat 21% federal rate since 2018 TCJA. State corporate taxes apply additionally and vary by state.
United States 2026 Complete Tax & Benefit Reference
Compiled from official United States government and statistical sources
| Metric | Value | Institution | Confidence |
|---|---|---|---|
| Income tax band 1 | 10% | IRS Revenue Procedure 2025-32 | Official |
| Income tax band 2 | 12% | IRS Revenue Procedure 2025-32 | Official |
| Income tax band 3 | 22% | IRS Revenue Procedure 2025-32 | Official |
| Income tax band 4 | 24% | IRS Revenue Procedure 2025-32 | Official |
| Income tax band 5 | 32% | IRS Revenue Procedure 2025-32 | Official |
| Income tax band 6 | 35% | IRS Revenue Procedure 2025-32 | Official |
| Income tax top rate | 37% | IRS Revenue Procedure 2025-32 | Official |
| Corporate tax main rate | 21% | Corporate Tax | Official |
| Statutory minimum wage (hourly) | $7,25/hour | United States labour authority | Official |
| Inflation 2025 | 2,9% | U.S. Bureau of Labor Statistics | Official |
ⓘ All figures are sourced from the responsible United States institution for the 2026 rule year.
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🔬 Methodology & Sources
Data Sources and Verification
All figures on this page are sourced directly from the responsible United States government institutions for the 2026 rule year. Income tax rates are taken from the official tax authority publications. Corporate tax rates are sourced from the relevant business tax authority. Minimum wage figures are from the government ministry responsible for labour law. Inflation data is from the national statistics institute. All values are cross-referenced against official published rates and verified as of the retrieval date shown in the sources section.
Formula
Effective income tax = sum_of(income_in_band × band_rate) - tax_credits | Corporate tax = sum_of(profit_in_band × band_rate)
CitationIRS - Internal Revenue Service; SSA - Social Security Administration; U.S. Department of Labor; U.S. Bureau of Labor Statistics; Centers for Medicare & Medicaid Services. Retrieved 2026.
❓ Frequently Asked Questions
In 2026, the Income Tax applies a 7-band progressive structure. The entry rate of 10% applies to the first taxable band up to $12.400. The top rate of 37% applies to income above $640.601. For exact take-home calculations, use the dedicated United States net salary calculator.
The Corporate Tax applies at 21%. Flat 21% federal rate since 2018 TCJA. State corporate taxes apply additionally and vary by state.
United States's statutory minimum wage is $7,25 gross per hour from 1 January 2026. United States sets the legal minimum wage as an hourly floor, not as a fixed statutory monthly wage. Monthly equivalents depend on contracted working hours. Self-employed workers are typically not covered by minimum wage legislation - it applies to employees under an employment contract.
U.S. Bureau of Labor Statistics recorded 2,9% annual CPI inflation in 2025. For United States employees, this means that salary increases below 2,9% represent a real-terms pay reduction in purchasing power. Collective agreements, benefit indexation, rent escalation clauses and cost-of-living modelling for 2026 should all reference this figure. Cumulative inflation since 2021 has been more substantial - approximately 11,6% over four years using this rate as a proxy.
This 2026 United States tax reference covers income tax bands, corporate tax rates, minimum wage and inflation from official sources. These are the headline figures used for salary planning, founder structuring and business cost modelling in United States. Use the tables on this page for exact rates and thresholds.
The marginal rate is the rate applied to the next euro of taxable income - in United States, this is 37% at the top. The effective rate is the average across all income: for a United States resident earning an average salary gross annually, the effective income tax rate is substantially lower than 37% because most of the income falls in lower bands. Tax credits and deductions reduce the effective rate further.
Self-employed individuals in United States are generally subject to Income Tax on their business profit under the income tax system. Unlike employees, self-employed workers are responsible for their own social security contributions. The Income Tax bands of 10% to 37% apply to net business income after allowable deductions. Many self-employed individuals in United States operate through a corporate structure to benefit from the lower Corporate Tax rate of 21%.
Companies subject to Corporate Tax in United States pay tax at 21%. Flat 21% federal rate since 2018 TCJA. State corporate taxes apply additionally and vary by state. Small and medium companies should work with a qualified accountant to ensure all available deductions, allowances and reliefs are applied correctly.
The figures shown are based on official publications from the responsible United States government institutions: IRS - Internal Revenue Service, SSA - Social Security Administration, U.S. Department of Labor. All values reflect the 2026 rule year. This page is for informational purposes - personalised tax outcomes depend on individual income, deductions, household structure and business circumstances. Always consult a qualified United States tax adviser for personal advice.
Sources & References
Data sourced from official institutional publications. Results are for informational purposes only. Last reviewed Jun 2026.
Data Disclaimer
This page is for informational purposes only. Actual tax outcomes depend on personal income, household composition, available deductions, eligibility for allowances and official assessment rules. Always consult a qualified United States tax adviser for personalised advice.
This page is for informational purposes only. Actual tax outcomes depend on personal income, household composition, available deductions, eligibility for allowances and official assessment rules. Always consult a qualified United States tax adviser for personalised advice.