Navigating US Taxation: What's the Pinnacle of Individual Income Tax Rates

What is the highest individual income tax rate in the United States?

The highest individual federal income tax rate in the United States for the 2021 tax year is 37%. This top rate applies to taxable income over $523,600 for single filers and over $628,300 for married couples filing jointly.

However, when considering state and local income taxes, the combined tax rate can be higher. For instance, California has the highest state income tax rate at 13.3% for individuals with income over $1 million. When combined with the federal top rate, a California resident could face a combined top marginal tax rate of over 50%.

Please bear in mind these tax rates can change with new legislation, and effective tax rates often end up lower due to various tax deductions, credits, and exclusions. Therefore, it is prudent for taxpayers, especially those with high income, to consult with a tax professional for customized tax planning and strategies.