query: What is the Pennsylvania state income tax rate?

title: State income tax

text: are prohibited from imposing local income tax): New Jersey: New York (all local taxes reported on state income tax form): Ohio: Oregon: Pennsylvania: West Virginia: Most states impose a tax on income of corporations having sufficient connection ("nexus") with the state. Such taxes apply to U.S. and foreign corporations, and are not subject to tax treaties. Such tax is generally based on business income of the corporation apportioned to the state plus nonbusiness income only of resident corporations. Most state corporate income taxes are imposed at a flat rate and have a minimum amount of tax. Business taxable income in

title: State income tax

text: The corporate income tax rate is 6.5%. Alaska does not have an individual income tax. Reference: The corporate income tax rate is 4.9%. Reference: The standard corporate rate is 8.84%, except for banks and other financial institutions, whose rate is 10.84%. Colorado has a flat rate of 4.63% for both individuals and corporations. Connecticut's corporate income tax rate is 7.5%. Reference: Delaware's corporate income tax rate is 8.7%. State income tax Most individual U.S. states collect a state income tax in addition to federal income tax. The two are separate entities. Some local governments also impose an income tax, often

title: State income tax

text: states do not level a broad-based individual income tax. Some of these do tax certain forms of personal income: The following eight states have a flat rate individual income tax as of 2016: The following states have local income taxes. These are generally imposed at a flat rate and tend to apply to a limited set of income items. Alabama: California: Colorado: Delaware: Indiana (all local taxes reported on state income tax form): Iowa (all local taxes reported on state income tax form): Kansas: Kentucky: Maryland (all local taxes reported on state income tax form): Michigan: Missouri (all other cities

title: Income tax

text: Income tax An income tax is a tax imposed on individuals or entities (taxpayers) that varies with respective income or profits (taxable income). Income tax generally is computed as the product of a tax rate times taxable income. Taxation rates may vary by type or characteristics of the taxpayer. The tax rate may increase as taxable income increases (referred to as graduated or progressive rates). The tax imposed on companies is usually known as corporate tax and is levied at a flat rate. However, individuals are taxed at various rates according to the slab in which they fall. Further, the

title: Dual income tax

text: was first implemented in the four Nordic countries (Denmark, Finland, Norway and Sweden) through a number of tax reforms from 1987 to 1993. The dual income tax is therefore also known as the "Nordic tax system" or the "Nordic Dual Income Tax". The dual income tax was first proposed by the Danish economist Niels Christian Nielsen in 1980. He suggested that the comprehensive income tax should be replaced by a system involving a flat rate of tax on capital income - at the level of the corporate income tax rate - combined with progressive taxation of the taxpayer's total income

title: Income tax in the United States

text: localities impose an income tax at a graduated rate, and some at a flat rate on all taxable income. Federal tax rates in 2013 varied from 10% to 39.6%. Individuals are eligible for a reduced rate of federal income tax on capital gains and qualifying dividends. The tax rate and some deductions are different for individuals depending on filing status. Married individuals may compute tax as a couple or separately. Single individuals may be eligible for reduced tax rates if they are head of a household in which they live with a dependent. Taxable income is defined in a comprehensive

title: Income tax in the United States

text: income taxes. This foreign tax credit is limited to that part of current year tax caused by foreign source income. Determining such part involves determining the source of income and allocating and apportioning deductions to that income. States tax resident individuals and corporations on their worldwide income, but few allow a credit for foreign taxes. In addition, Federal income tax may be imposed on non-resident non-citizens, including corporations, on U.S. source income. Federal tax applies to interest, dividends, royalties, and certain other income of nonresident aliens and foreign corporations at a flat rate of 30%. This rate is often reduced

title: Income tax

text: partnership firms are also taxed at flat rate. Most jurisdictions exempt locally organized charitable organizations from tax. Capital gains may be taxed at different rates than other income. Credits of various sorts may be allowed that reduce tax. Some jurisdictions impose the higher of an income tax or a tax on an alternative base or measure of income. Taxable income of taxpayers resident in the jurisdiction is generally total income less income producing expenses and other deductions. Generally, only net gain from sale of property, including goods held for sale, is included in income. Income of a corporation's shareholders usually

title: Negative income tax

text: antithetical to the efficacy of the negative income tax. Friedman preferred to have no income tax at all, but said he did not think it was politically feasible at that time to eliminate it, so he suggested this as a less harmful income tax scheme. The effort for reporting and supervision can be significantly reduced by combining basic income with flat income tax. The relationship between gross and net income for individuals can be adjusted to correspond roughly to current relationship at all income levels, implying that income tax is effectively progressive. A flat rate income taxation with tax exemption

title: Income tax in the United States

text: by employees and tables provided by the IRS. Persons paying interest, dividends, royalties, and certain other amounts to foreign persons must also withhold income tax at a flat rate of 30%. This rate may be reduced by a tax treaty. These withholding requirements also apply to non-U.S. financial institutions. Additional backup withholding provisions apply to some payments of interest or dividends to U.S. persons. The amount of income tax withheld is treated as a payment of tax by the person receiving the payment on which tax was withheld. Employers and employees must also pay Social Security tax, the employee portion

title: Income tax in the United States

text: prior AMT. The credit is limited so that regular tax is not reduced below current year AMT. AMT is imposed at a nearly flat rate (20% for corporations, 26% or 28% for individuals, estates, and trusts) on taxable income as modified for AMT. Key differences between regular taxable income and AMT taxable income include: The US tax system allows individuals and entities to choose their tax year. Most individuals choose the calendar year. There are restrictions on choice of tax year for some closely held entities. Taxpayers may change their tax year in certain circumstances, and such change may require

title: Rate schedule (federal income tax)

text: than a dollar in taxable income, thus making the marginal tax rate greater than what is suggested by the table. These schedules apply only to regular US income tax, whereas there is a second income tax, the Alternative Minimum Tax, that uses a different schedule. A taxpayer's tax obligation is the higher of those two income taxes, which makes drawing conclusions from the table even more difficult. All rate schedules have an identical format, containing four columns and seven rows (called "brackets"). The first two columns indicate the range of taxable income that a taxpayer must have to qualify for

title: State income tax

text: State income tax Most individual U.S. states collect a state income tax in addition to federal income tax. The two are separate entities. Some local governments also impose an income tax, often based on state income tax calculations. Forty-three states and many localities in the United States may impose an income tax on individuals. Forty-seven states and many localities impose a tax on the income of corporations. State income tax is imposed at a fixed or graduated rate on taxable income of individuals, corporations, and certain estates and trusts. The rates vary by state. Taxable income conforms closely to federal

title: State income tax

text: income tax. State income tax is allowed as a deduction in computing federal income tax, subject to limitations for individuals. State tax rules vary widely. The tax rate may be fixed for all income levels and taxpayers of a certain type, or it may be graduated. Tax rates may differ for individuals and corporations. Most states conform to federal rules for determining: Gross income generally includes all income earned or received from whatever source, with exceptions. The states are prohibited from taxing income from federal bonds or other obligations. Most states also exempt income from bonds issued by that state

title: Rate schedule (federal income tax)

text: taxable income of $175,000 in 2014. The following steps apply the procedure outlined above: Accordingly, Taxpayer A must pay $42,175.75 in federal income taxes for 2014. Since his income is in the fourth bracket, his marginal tax rate for each additional dollar he earns is 28%, but his effective tax rate is 24% ($42,175.75/$175,000 is .241). General: Rate schedule (federal income tax) A rate schedule is a chart that helps United States taxpayers determine their federal income tax for a particular year. Another name for "rate schedule " is "rate table." The origin of the current rate schedules is the

title: State income tax

text: General Motors protested a proposed corporate income tax in Michigan with threats of moving manufacturing out of the state. However, Michigan led off the most recent group of new income taxes: In the early 1970s, Pennsylvania and Ohio competed for businesses with Ohio wooing industries with a reduced corporate income tax but Pennsylvania warning that Ohio had higher municipal taxes that included taxes on inventories, machinery and equipment. A few more events of the 1970s: The only subsequent individual income tax instituted to date is Connecticut's, from 1991, replacing the earlier intangibles tax. The median family income in many of

title: Income tax in the United States

text: increase complexity, irrespective of the system's flatness or lack thereof. Income tax is also levied by most U.S. states and many localities on individuals, corporations, estates, and trusts. These taxes are in addition to federal income tax and are deductible for federal tax purposes. State and local income tax rates vary from 1% to 16% of taxable income. Some state and local income tax rates are flat (single rate) and some are graduated. State and local definitions of what income is taxable vary highly. Some states incorporate the federal definitions by reference. Taxable income is defined separately and differently for

title: Rate schedule (federal income tax)

text: (IRS) updates rate schedules in accordance with guidelines that Congress established in the IRC. In general, the IRS bases such adjustments on inflation and cost of living increases in the previous year. The tax rate schedules give tax rates for given levels of taxable income. There is a complex relationship between taxable income and actual income, making it difficult to draw conclusions from the tables. Even the marginal tax rates are misleading because there are various laws that relate taxable income to actual income such that an increase of a dollar of actual income results in an increase of more

title: Rate schedule (federal income tax)

text: Rate schedule (federal income tax) A rate schedule is a chart that helps United States taxpayers determine their federal income tax for a particular year. Another name for "rate schedule " is "rate table." The origin of the current rate schedules is the Internal Revenue Code of 1986 (IRC), which is separately published as Title 26 of the United States Code. With that law, the U.S. Congress created four types of rate tables, all of which are based on a taxpayer's filing status (e.g., "married individuals filing joint returns," "heads of households"). Each year the United States Internal Revenue Service

title: Tax rate

text: earned. In the United States in 2016, for example, the highest marginal federal income tax rate was 39.6%, applying to earnings over $415,050. Earnings under $415,050 that year had a lower tax rate of 35% or less. The marginal tax rate on income can be expressed mathematically as follows: where "t" is the total tax liability and "i" is total income, and ∆ refers to a numerical change. In accounting practice, the tax numerator in the above equation usually includes taxes at federal, state, provincial, and municipal levels. Marginal tax rates are applied to income in countries with progressive taxation

title: Progressivity in United States income tax

text: federal tax system also includes deductions for state and local taxes for lower income households which mitigates what are sometimes regressive taxes, particularly property taxes. Higher income households are subject to the Alternative Minimum Tax that limits deductions and sets a flat tax rate of 26% to 28% with the higher rate commencing at $175,000 in income. There are also deduction phaseouts starting at $112,500 for single filers. The net effect is increased progressivity that completely limits deductions for state and local taxes and certain other credits for individuals earning more than $306,300. While the top marginal tax rate on

title: Tax rate

text: basis. For direct rate comparisons between exclusive and inclusive taxes, one rate must be manipulated to look like the other. When a tax system imposes taxes primarily on income, the tax base is a household's pre-tax income. The appropriate income tax rate is applied to the tax base to calculate taxes owed. Under this formula, taxes to be paid are included in the base on which the tax rate is imposed. If an individual's gross income is $100 and income tax rate is 20%, taxes owed equals $20. The income tax is taken "off the top", so the individual is

title: Hall income tax

text: Hall income tax The Hall income tax is a Tennessee state tax on interest and dividend income from investments. It is the only tax on personal income in Tennessee, which does not levy a general state income tax. The tax rate prior to 2016 was 6 percent, applied to all taxable interest and dividend income over $1250 per person ($2500 for married couples filing jointly). Revenues are shared with the government of the municipality or county where the taxpayer resides. In 2016, the state reduced the Hall income tax to 5% with intention to eliminate it completely. On April 26,

title: State income tax

text: Income tax is self assessed, and individual and corporate taxpayers in all states imposing an income tax must file tax returns in each year their income exceeds certain amounts determined by each state. Returns are also required by partnerships doing business in the state. Many states require that a copy of the federal income tax return be attached to at least some types of state income tax returns. The time for filing returns varies by state and type of return, but for individuals in many states is the same (typically April 15) as the federal deadline. Every state, including those

title: Rate schedule (federal income tax)

text: a particular tax rate. The third column indicates the tax rate itself. The fourth column gives the range of income to which the current marginal rate applies. Given that Congress has prescribed a system of progressive taxation, all but the lowest-earning taxpayers pay distinct rates for different parts of their income. The following are the IRS rate schedules for 2014: Schedule X — Single Schedule Y-1 — Married filing Jointly or Qualifying Widow(er) Schedule Y-2 — Married Filing Separately Schedule Z — Head of Household Caution: These tables shown above are accurate for 2014 only and do not apply for

title: Tax rate

text: be higher than the effective tax rate. An average tax rate is the ratio of the total amount of taxes paid to the total tax base (taxable income or spending), expressed as a percentage. In a proportional tax, the tax rate is fixed and the average tax rate equals this tax rate. In case of tax brackets, commonly used for progressive taxes, the average tax rate increases as taxable income increases through tax brackets, asymptoting to the top tax rate. For example, consider a system with three tax brackets, 10%, 20%, and 30%, where the 10% rate applies to income

title: Income tax in the United States

text: insurance (Social Security) taxes in 2016. The table below also does not reflect changes, effective with 2013 law, which increased the average tax paid by the top 1% to the highest levels since 1979, at an effective rate of 33%, while most other taxpayers have remained near the lowest levels since 1979. Income tax is imposed as a tax rate times taxable income. Taxable income is defined as gross income less allowable deductions. Taxable income as determined for federal tax purposes may be modified for state tax purposes. The Internal Revenue Code states that "gross income means all income from

title: Tax rate

text: from $1 to $10,000, the 20% rate applies to income from $10,001 to $20,000, and the 30% rate applies to all income above $20,000. Under this system, someone earning $25,000 would pay $1,000 for the first $10,000 of income (10%); $2,000 for the second $10,000 of income (20%); and $1,500 for the last $5,000 of income (30%). In total, they would pay $4,500, or an 18% average tax rate. A marginal tax rate is the tax rate an individual would pay on one additional dollar of income. Thus, the marginal tax rate is the tax percentage on the last dollar

title: Income tax in the Netherlands

text: as "boxes". There is a progressive tax on wages, profits, social security benefits and pensions. Thus there are tax brackets, each with its own tax rate. Mathematically, apart from discretization (whole euros both for income and for tax), the tax is a continuous, convex, piecewise linear function of income. For 2010, income tax for people under the age 65 is as follows For 2010, the total tax on income (income tax plus mandatory pension, social security and state funded medical care payments, all of which are a percentage of income up to a maximum) for people under the age 65

title: Hall income tax

text: and living on dividends, I'm not sure why you should be treated so much different from someone who's living on a salary." Hall income tax The Hall income tax is a Tennessee state tax on interest and dividend income from investments. It is the only tax on personal income in Tennessee, which does not levy a general state income tax. The tax rate prior to 2016 was 6 percent, applied to all taxable interest and dividend income over $1250 per person ($2500 for married couples filing jointly). Revenues are shared with the government of the municipality or county where the

title: Effective marginal tax rate

text: As such tables showing EMTRs are rarely published. The net effect however is generally a higher effective marginal rate of tax than that suggested by income tax tables. Effective marginal tax rate The effective marginal tax rate (EMTR) is the combined effect on a person's earnings of income tax and the withdrawal of means testing of state welfare benefits. The EMTR is the percentage of an extra unit of income (extra dollar, euro, yen etc.) that the recipient loses due to income taxes, payroll taxes, and any decline in tax credits and welfare entitlements. Calculating the EMTR is typically very

title: State income tax

text: particularly with respect to partnerships. Most states require taxpayers to make quarterly payments of tax not expected to be satisfied by withholding tax. All states impose penalties for failing to file required tax returns and/or pay tax when due. In addition, all states impose interest charges on late payments of tax, and generally also on additional taxes due upon adjustment by the taxing authority. Forty-three states impose a tax on the income of individuals, sometimes referred to as personal income tax. State income tax rates vary widely from state to state. The states imposing an income tax on individuals tax

title: Effective marginal tax rate

text: Effective marginal tax rate The effective marginal tax rate (EMTR) is the combined effect on a person's earnings of income tax and the withdrawal of means testing of state welfare benefits. The EMTR is the percentage of an extra unit of income (extra dollar, euro, yen etc.) that the recipient loses due to income taxes, payroll taxes, and any decline in tax credits and welfare entitlements. Calculating the EMTR is typically very dependent on individual circumstances and involves a consideration of welfare withdrawal rules, income tax laws, low income tax offsets, tax rebates and the individuals tax and welfare status.

title: Negative income tax

text: implements a negative income tax as well as maintaining an actual tax rate progression at extremely low administrative cost. This is achieved by paying a "tax on the tax exemption to all taxpayers", e.g. in monthly payments. The tax on the tax exemption is computed by applying the nominal flat tax rate to the exemption. The tax on the income is drawn directly "from the source", e.g. from an employer. The tax on income is computed by applying the nominal flat tax rate to the income. This simple method results in an effective progressive rate taxation (although the tax rate

title: Tax rate

text: Tax rate In a tax system, the tax rate is the ratio (usually expressed as a percentage) at which a business or person is taxed. There are several methods used to present a tax rate: statutory, average, marginal, and effective. These rates can also be presented using different definitions applied to a tax base: inclusive and exclusive. A statutory tax rate is the legally imposed rate. An income tax could have multiple statutory rates for different income levels, where a sales tax may have a flat statutory rate. The statutory tax rate is expressed as a percentage and will always

title: Rate schedule (federal income tax)

text: any other year. For 2013 and 2015. To use a rate schedule, a taxpayer must know their filing status and amount of taxable income. Definitions related to one's filing status can be found in IRC § A.2(a-b), and general guidelines regarding taxable income are described in IRC § A.63(a-b). Once a taxpayer has made these determinations, he (1) references the pertinent rate schedule, (2) finds the appropriate bracket (based on her taxable income), and (3) uses the formula described in the third column to determine his federal income tax. Assume, for example, that Taxpayer A is single and has a

title: Income tax in the United States

text: to file tax returns for federal and many state and local returns. Tax as determined by the taxpayer may be adjusted by the taxing jurisdiction. A tax is imposed on net taxable income in the United States by the federal, most state, and some local governments. Income tax is imposed on individuals, corporations, estates, and trusts. The definition of net taxable income for most sub-federal jurisdictions mostly follows the federal definition. The rate of tax at the federal level is graduated; that is, the tax rates on higher amounts of income are higher than on lower amounts. Some states and

title: State income tax

text: with no income tax, has a state taxing authority with power to examine (audit) and adjust returns filed with it. Most tax authorities have appeals procedures for audits, and all states permit taxpayers to go to court in disputes with the tax authorities. Procedures and deadlines vary widely by state. All states have a statute of limitations prohibiting the state from adjusting taxes beyond a certain period following filing returns. All states have tax collection mechanisms. States with an income tax require employers to withhold state income tax on wages earned within the state. Some states have other withholding mechanisms,

title: State income tax

text: for federal income tax purposes. For example, many states do not allow the additional first year depreciation deduction. Most states tax capital gain and dividend income in the same manner as other investment income. In this respect, individuals and corporations not resident in the state generally are not required to pay any income tax to that state with respect to such income. Some states have alternative measures of tax. These include analogs to the federal Alternative Minimum Tax in 14 states, as well as measures for corporations not based on income, such as capital stock taxes imposed by many states.

title: State income tax

text: all taxable income (as defined in the state) of residents. Such residents are allowed a credit for taxes paid to other states. Most states tax income of nonresidents earned within the state. Such income includes wages for services within the state as well as income from a business with operations in the state. Where income is from multiple sources, formulary apportionment may be required for nonresidents. Generally, wages are apportioned based on the ratio days worked in the state to total days worked. All states that impose an individual income tax allow most business deductions. However, many states impose different

title: Dual income tax

text: Dual income tax The dual income tax system levies a proportional tax rate on all net income (capital, wage and pension income less deductions) combined with progressive tax rates on gross labour and pension income. This implies that labour income is taxed at higher rates than capital income, and that the value of the tax allowances is independent of the income level. The dual income tax system deliberately moves away from the comprehensive income tax (global income tax) system which taxes all or most (cash) income less deductions (net income) according to the same rate schedule. The dual income tax

title: Tax rate

text: determining income tax expense for interim (e.g. quarterly) periods by multiplying accounting income by an "estimated annual effective tax rate", the definition of which rate varies depending on the reporting entity's circumstances. In U.S. income tax law, the term is used in relation to determining whether a foreign income tax on specific types of income exceeds a certain percentage of U.S. tax that would apply on such income if U.S. tax had been applicable to the income. The popular press, Congressional Budget Office, and various think tanks have used the term to mean varying measures of tax divided by varying

title: Income tax in the United States

text: tax policies of the mid-1980s were the least progressive period since 1979. Government transfer payments contributed more to reducing inequality than taxes. Other Federal taxation: US State taxes: Politics: General: Government sources: Law & regulations: Texts: Monographs: Reference works (annual): Consumer publications (annual): Income tax in the United States Income taxes in the United States are imposed by the federal, most state, and many local governments. The income taxes are determined by applying a tax rate, which may increase as income increases, to taxable income, which is the total income less allowable deductions. Income is broadly defined. Individuals and corporations

title: State income tax

text: property taxes were evolving toward the modern resale-value model, several states continued to collect faculty taxes. Between the enactment of the Constitution and 1840, no new general taxes on income appeared. In 1796, Delaware abolished its faculty tax, and in 1819 Connecticut followed suit. On the other hand, in 1835, Pennsylvania instituted a tax on bank dividends, paid by withholding, which by about 1900 produced half its total revenue. Several states, mostly in the South, instituted taxes related to income in the 1840s; some of these claimed to tax total income, while others explicitly taxed only specific categories, these latter

title: State income tax

text: taxable income in most states, with limited modifications. The states are prohibited from taxing income from federal bonds or other obligations. Most do not tax Social Security benefits or interest income from obligations of that state. Several states require different useful lives and methods be used by businesses in computing the deduction for depreciation. Many states allow a standard deduction or some form of itemized deductions. States allow a variety of tax credits in computing tax. Each state administers its own tax system. Many states also administer the tax return and collection process for localities within the state that impose

title: Dual income tax

text: was reluctant to give up the idea of progressive taxation of capital income. The final tax reform of 1987 included some amount of progressive taxation of capital income, but the top marginal tax rate on capital income (56 percent) was less than the top marginal tax rate of labour income (68 percent). It was thus not a pure dual income tax that was introduced in Denmark in 1987, but the Danish tax system moved considerably away from the comprehensive income tax. Dual income tax The dual income tax system levies a proportional tax rate on all net income (capital, wage

title: Tax rate

text: measures of income, with little consistency in definition. Investors usually modify a statutory marginal tax rate to create the effective tax rate appropriate for their decision. For example: If capital gains are only taxed when realized by a sale, the effective tax rate is the yearly rate that would have applied to the average yearly gain so that the resulting after-tax profit is the same as when all taxed at statutory rates on sale. It will be lower than the statutory rate because unrealized profits are reinvested without tax. For example: When dividends are both taxed as income, and also

title: Negative income tax

text: for the taxes drawn at the source is flat) which is positive once the income exceeds the tax exemption. If, however, the income is less than the tax exemption, the effective progressive rate actually becomes negative without any involvement by any tax authority. As for the positive progression, only very high incomes would lead to an actual tax rate which is close to the nominal flat tax rate. The tax on tax exemption also can be understood as a tax credit, which is paid back once an income has reached the level of the tax exemption. This level marks the

title: State income tax

text: Generally, a resident corporation is one incorporated in that state. The definition of nonbusiness income varies but generally includes investment income of business corporations, including dividends. Some states require and some states permit parent/subsidiary controlled groups of corporations to file returns on a consolidated or combined basis. California and Illinois require that all U.S. members of a "unitary" group must file a combined return. State corporate income tax returns vary highly in complexity from two pages to more than 20 pages. States often require that a copy of the federal income tax return be attached to the state return. Corporate

title: 10p tax rate

text: 10p tax rate The starting rate of income tax, often known as the 10p rate, was a special rate of personal income taxation in the United Kingdom that existed from 1999 to 2008. The starting rate was the lowest rate of income tax in the United Kingdom. It meant that certain incomes above the personal allowance would be taxed at a basic rate of 10%, which meant a reduced rate compared with the previous basic UK income tax rate of 23%. The reduced tax rate for low incomes was introduced in Gordon Brown's third budget as Chancellor of the Exchequer.

title: Character (income tax)

text: IRS characterizes the amount that exceeds the purchase price as capital income while the amount that falls short of the purchase price is capital loss. The IRS refers to the purchase price as the tax basis. When the IRS characterizes income as capital gain, it enjoys a lower tax rate than ordinary income. The IRS characterizes ordinary income as income generated from earned wage income or interest income earned from lending. The IRS taxes ordinary income according to a progressive rate determined by the amount of income. It is a progressive income tax. Character (income tax) Character is the type

title: 10p tax rate

text: Brown said of its introduction: "The 10p rate is very important because it's a signal about the importance we attach about getting people into work and it's of most importance to the low paid. This is not about gimmicks; this is about tax reform that encourages work and families, on the families side it is replacing what was an anomalous married couples' allowance and replace it with a child tax credit." At the time of its introduction in 1999, the reduced tax rate of 10% applied to incomes between £4,335 and £5,835 and was the only income tax paid by

title: Income tax in the United States

text: Corporations) are taxed on dividend distributions from the corporation. They are also subject to tax on capital gains upon sale or exchange of their shares for money or property. However, certain exchanges, such as in reorganizations, are not taxable. Multiple corporations may file a consolidated return at the federal and some state levels with their common parent. Federal corporate income tax is imposed at graduated rates from 15% to 35%. The lower rate brackets are phased out at higher rates of income, with all income subject to tax at 34% to 35% where taxable income exceeds $335,000. Additional tax rates

title: State income tax

text: limits on certain deductions, especially depreciation of business assets. Most of the states allow non-business deductions in a manner similar to federal rules. Few allow a deduction for state income taxes, though some states allow a deduction for local income taxes. Six of the states allow a full or partial deduction for federal income tax. In addition, some states allow cities and/or counties to impose income taxes. For example, most Ohio cities and towns impose an income tax on individuals and corporations. By contrast, in New York, only New York City and Yonkers impose a municipal income tax. Nine U.S.

title: State income tax

text: the state's suburbs was nearly twice that of families living in urban areas. Governor Lowell Weicker's administration imposed a personal income tax to address the inequities of the sales tax system, and implemented a program to modify state funding formulas so that urban communities received a larger share. Numerous states with income taxes have considered measures to abolish those taxes since the Late-2000s recession began, and several states without income taxes have considered measures to institute them, but only one such proposal has been enacted: Michigan replaced its more recent value-added tax with a new corporate income tax in 2009.

title: Income tax in the United States

text: Income tax in the United States Income taxes in the United States are imposed by the federal, most state, and many local governments. The income taxes are determined by applying a tax rate, which may increase as income increases, to taxable income, which is the total income less allowable deductions. Income is broadly defined. Individuals and corporations are directly taxable, and estates and trusts may be taxable on undistributed income. Partnerships are not taxed, but their partners are taxed on their shares of partnership income. Residents and citizens are taxed on worldwide income, while nonresidents are taxed only on income

title: 10p tax rate

text: the adaptation. These changes were implemented in September 2008. In the years after the abolition of the reduced tax rate for low incomes, the UK government made further adaptations to personal income taxation, notably to the personal allowance: 10p tax rate The starting rate of income tax, often known as the 10p rate, was a special rate of personal income taxation in the United Kingdom that existed from 1999 to 2008. The starting rate was the lowest rate of income tax in the United Kingdom. It meant that certain incomes above the personal allowance would be taxed at a basic

title: State income tax

text: in various ways to produce substantial revenue, for the first time in the history of American income taxation. On the other hand, as soon as the war ended, a wave of abolitions began: Missouri in 1865, Georgia in 1866, South Carolina in 1868, Pennsylvania and Texas in 1871, and Kentucky in 1872. The rest of the century balanced new taxes with abolitions: Delaware levied a tax on several classes of income in 1869, then abolished it in 1871; Tennessee instituted a tax on dividends and bond interest in 1883, but Kinsman reports that by 1903 it had produced zero actual

title: State income tax

text: 1917. (Arguably, Alaska, purchased from Russia in 1867, and Hawaii, annexed in 1900, were also dependencies, but both were by 1903 "incorporated" in the U.S., which these others never have been.) The Panama Canal Zone was essentially a company town, but the others all began levying income taxes under American rule. (Puerto Rico already had an income tax much like a faculty tax, which remained in effect for a short time after 1898.) A third of the current state individual income taxes, and still more of the current state corporate income taxes, were instituted during the decade after the Great

title: State income tax

text: or localities within the state, as well as some portion or all of Social Security benefits. Many states provide tax exemption for certain other types of income, which varies widely by state. The states imposing an income tax uniformly allow reduction of gross income for cost of goods sold, though the computation of this amount may be subject to some modifications. Most states provide for modification of both business and non-business deductions. All states taxing business income allow deduction for most business expenses. Many require that depreciation deductions be computed in manners different from at least some of those permitted

title: State income tax

text: most states is defined, at least in part, by reference to federal taxable income. According to www.taxfoundation.org these states have no state corporate income tax as of Feb 1, 2010: Nevada, Washington, Wyoming, Texas, and South Dakota. However, Texas has a franchise tax based on "taxable margin", generally defined as sales less either cost of goods sold less compensation, with complete exemption (no tax owed) for less than $1MM in annual earnings and gradually increasing to a maximum tax of 1% based on net revenue, where net revenue can be calculated in the most advantageous of four different ways. States

title: Tax rate

text: schemes, with incremental increases in income taxed in progressively higher tax brackets. In economics, one theory is that marginal tax rates will impact the incentive of increased income, meaning that higher marginal tax rates cause individuals to have less incentive to earn more. This is the basis of the Laffer curve theory, which theorizes that population-wide taxable income decreases as a function of the marginal tax rate, making net governmental tax revenues decrease beyond a certain taxation point. With a flat tax, by comparison, all income is taxed at the same percentage, regardless of amount. An example is a sales

title: Income tax

text: and many of its states and Switzerland, impose the higher of regular income tax or an alternative tax. Switzerland and U.S. states generally impose such tax only on corporations and base it on capital or a similar measure. Income tax is generally collected in one of two ways: through withholding of tax at source and/or through payments directly by taxpayers. Nearly all jurisdictions require those paying employees or nonresidents to withhold income tax from such payments. The amount to be withheld is a fixed percentage where the tax itself is at a fixed rate. Alternatively, the amount to be withheld

title: State income tax

text: taxpayers. The "substantial nexus" requirement of "Complete Auto", supra, has been applied to corporate income tax by numerous state supreme courts. The courts have held that the requirement for fair apportionment may be met by apportioning between jurisdictions all business income of a corporation based on a formula using the particular corporation's details. Many states use a three factor formula, averaging the ratios of property, payroll, and sales within the state to that overall. Some states weight the formula. Some states use a single factor formula based on sales. Some states tax resident corporations on nonbusiness income regardless of apportionment.

title: Income tax in the United States

text: a tax on property and it certainly is not a capitation tax; therefore, it need not be apportioned. ... Congress has the power to impose taxes generally, and if the particular imposition does not run afoul of any constitutional restrictions then the tax is lawful, call it what you will. Federal and state income tax rates have varied widely since 1913. For example, in 1954, the federal income tax was based on layers of 24 income brackets at tax rates ranging from 20% to 91% (for a chart, see Internal Revenue Code of 1954). Below is a table of historical

title: Pennsylvania Film Production Tax Credit

text: Pennsylvania Film Production Tax Credit The Pennsylvania Film Production Tax Credit is a tax credit program supporting the production of feature films and television programs in Pennsylvania. The tax credit was signed into law by Gov. Ed Rendell in July 2004. The tax credit for qualifying productions equals a 25% reduction in Personal Income Tax, Corporate Net Income, Capital Stock/Foreign Franchise Tax. However, because most productions filming in Pennsylvania do not incur a tax liability in the state, the credits are fully transferable, which means they can be sold to a company or individual in the state who does have

title: Canada small business tax rate

text: Canada small business tax rate In Canada, the small business tax rate is the tax rate paid by a small business. As of 2018, the small business tax rate is 10%. A small business in Canada is defined as a Canadian-based corporation with less than 100 employees and under $500,000 in annual income. The general corporate tax rate is 28%. Small businesses are allowed to claim a "small business deduction" under the "Income Tax Act"; the deduction enumerated in that Act is deducted from the 28% general tax rate and means the net small business tax rate is as follows:

title: Canada small business tax rate

title: 10p tax rate

text: The abolition of the 10% tax band came into effect at the start of the 2008 tax year and was the source of considerable criticism. High-profile figures protested, including former minister Frank Field. In May 2008, the Chancellor of the Exchequer announced that the 2008-2009 personal allowance would be increased by £600 (from £5435 to £6035) to help low-income tax-payers affected by the abolition of the 10% starting rate of income tax. At the same time, the threshold for higher rate income tax was reduced by £600, so that higher rate tax payers would not be able to benefit from

title: Hall income tax

text: to settle in Tennessee. Organizations including the League of Women Voters of Tennessee and Tennesseans for Fair Taxation have endorsed the repeal of the Hall income tax as part of comprehensive tax reform that includes implementation of a broad-based personal income tax. In its "Legislator's Guide to the Issues" issued in 2009 and 2011, the Tennessee Center for Policy Research called the 6 percent rate "sizeable" and said the tax "makes Tennessee an unwelcoming place, particularly for retirees and the wealthy." The organization advocated repealing the tax "to encourage wealthy and retired individuals to move to Tennessee" and cutting state

text: the combined federal, state, and local government average marginal tax rate for most workers to be about 40% of income. Progressivity in the income tax is accomplished mainly by establishing tax "brackets" - branches of income that are taxed at progressively higher rates. For example, for tax year 2006 an unmarried person with no dependents will pay 10% tax on the first $7,550 of taxable income. The next $23,100 (i.e. taxable income over $7,550, up to $30,650) is taxed at 15%. The next $43,550 of income is taxed at 25%. Additional brackets of 28%, 33%, 35% and 39.6% apply to

title: Income tax in the Netherlands

text: is as follows: For 2011, income tax for people under the age 65 is as follows: For 2011, the total tax on income (income tax plus mandatory pension, social security and state funded medical care payments, all of which are a percentage of income up to a maximum) for people under the age 65 is as follows: For 2012, income tax for people under the age 65 is as follows: For 2012, the total tax on income (income tax plus mandatory pension, social security and state funded medical care payments, all of which are a percentage of income up to

title: State income tax

text: are not permitted to tax income of a corporation unless four tests are met under "Complete Auto Transit, Inc. v. Brady": Substantial nexus (referred to generally as simply "nexus") is a general U.S. Constitutional requirement that is subject to interpretation, generally by the state's comptroller or tax office, and often in administrative "letter rulings". In "Quill Corp. v. North Dakota" the Supreme Court of the United States confirmed the holding of "National Bellas Hess v. Illinois" that a corporation or other tax entity must maintain a physical presence in the state (such as physical property, employees, officers) for the state

title: Income tax

text: By the 1860s, the progressive tax had become a grudgingly accepted element of the English fiscal system. The US federal government imposed the first personal income tax on August 5, 1861, to help pay for its war effort in the American Civil War - (3% of all incomes over US$800) (equivalent to $ in ). This tax was repealed and replaced by another income tax in 1862. It was only in 1894 that the first peacetime income tax was passed through the Wilson-Gorman tariff. The rate was 2% on income over $4000 (equivalent to $ in ), which meant fewer

title: Pennsylvania Film Production Tax Credit

text: of filming for "I Am Number Four" also took place in the greater Pittsburgh area in 2010 due to the tax credit. Pennsylvania Film Production Tax Credit The Pennsylvania Film Production Tax Credit is a tax credit program supporting the production of feature films and television programs in Pennsylvania. The tax credit was signed into law by Gov. Ed Rendell in July 2004. The tax credit for qualifying productions equals a 25% reduction in Personal Income Tax, Corporate Net Income, Capital Stock/Foreign Franchise Tax. However, because most productions filming in Pennsylvania do not incur a tax liability in the state,

title: Tax rate

text: tax where all purchases are taxed equally. A poll tax is a flat tax of a set dollar amount per person. The marginal tax in these scenarios would be zero. For individuals that receive means tested benefits, benefits are decreased as more income is earned. This is sometimes described as an implicit tax. These implicit marginal tax rates can exceed 90% or even greater than 100%. Some economists argue that these issues create a disincentive for work or promotion and may result in a structural income inequality. The term effective tax rate has different meanings in different contexts. Generally its

title: Income tax in the United States

text: of the old property. Before 1986 and from 2004-2012, individuals were subject to a reduced rate of federal tax on capital gains (called long-term capital gains) on certain property held more than 12 months. The reduced rate of 15% applies for regular tax and the Alternative Minimum Tax. The reduced rate also applies to dividends from corporations organized in the United States or a country with which the United States has an income tax treaty. The American Taxpayer Relief Act of 2012 made qualified dividends a permanent part of the tax code, but added a 20% rate on income in

title: Income tax in the Netherlands

text: a maximum) for people under the age 65 is as follows: For 2013, income tax for people under the age 65 is as follows: For 2013, the total tax on income (income tax plus mandatory pension, social security and state funded medical care payments, all of which are a percentage of income up to a maximum) for people under the age 65 is as follows: For 2014, the total tax on income (income tax plus mandatory pension, social security and state funded medical care payments, all of which are a percentage of income up to a maximum) for people under

title: Unrelated Business Income Tax

text: a retirement account investor is seeking to invest retirement funds into a business operated through a LLC, she can establish a C Corporation, invest her IRA funds through the C Corporation, and then have the C Corporation invest the funds into the business LLC. All income received by the C Corporation would be subject to the new reduced corporate tax rate of 21%, which is less than the 37% maximum UBIT tax rate and less than the old maximum corporate tax rate of 35%. Since at least 1928, tax-exempt organizations could earn tax-free income from both mission-related activities and commercial

text: a single taxpayer with no dependents in 2006: This would appear to be highly progressive - the person with the higher taxable income pays tax at twice the rate. However, if you divide the tax by the amount of gross income (i.e., before deductions), the effective rates are 11% and 23%: the higher income person's rate is still twice as high, but his deductions drive down the effective rate more quickly ((14%-11%)/14% = a 21.4% effective tax rate savings or discount at the low income bracket; (31%-23%)/31% = a 29% effective tax rate savings or discount at the higher income

title: Income tax in the Netherlands

text: substantial interest, even if they do not amount to 5%. Income from substantial interest includes: For 2007 only there was a reduced rate ranging from 22 to 25%. See also . There is a flat tax on the total value of the savings and investments of 1.2% per year. It is nominally part of the income tax, as a 30% tax on a fixed assumed yield of 4% of the value of the assets (this is regardless of the actual income from the assets). EUR 21,139 (2012; higher for 65+ with a low income) of the value of the assets

title: Income tax in the United States

text: increase rapidly to the maximum rate for individuals. The tax rate for trust and estate income in excess of $11,500 was 35% for 2009. Estates and trusts are eligible for the reduced rate of tax on dividends and capital gains through 2011. Employers get a deduction for amounts contributed to a qualified employee retirement plan or benefit plan. The employee does not recognize income with respect to the plan until he or she receives a distribution from the plan. The plan itself is organized as a trust and is considered a separate entity. For the plan to qualify for tax

title: Income tax

text: necessarily final amounts of tax, as the worker may be required to aggregate wage income with other income and/or deductions to determine actual tax. Calculation of the tax to be withheld may be done by the government or by employers based on withholding allowances or formulas. Retirement oriented taxes, such as Social Security or national insurance, also are a type of income tax, though not generally referred to as such. These taxes generally are imposed at a fixed rate on wages or self-employment earnings up to a maximum amount per year. The tax may be imposed on the employer, the

title: Tax rate

text: calculation attempts to adjust a nominal tax rate to make it more meaningful. It may incorporate econometric, estimated, or assumed adjustments to actual data, or may be based entirely on assumptions or simulations. The term is used in financial reporting to measure the total tax paid as a percentage of the company's accounting income, instead of as a percentage of the taxable income. International Accounting Standard 12, define it as income tax expense or benefit for accounting purposes divided by accounting profit. In Generally Accepted Accounting Principles (United States), the term is used in official guidance only with respect to

title: Income tax in the Netherlands

text: the age 65 is as follows: For 2015, the total tax on income (income tax plus mandatory pension, social security and state funded medical care payments, all of which are a percentage of income up to a maximum) for people under the age 65 is as follows: For 2016, the total tax on income (income tax plus mandatory pension, social security and state funded medical care payments, all of which are a percentage of income up to a maximum) for people under the age 65 is as follows: Under certain conditions a life annuity is treated as a pension: premiums

title: Flat tax

text: 16% flat tax on personal income and corporate profit on 1 January 2005. Macedonia introduced a 12% flat tax on personal income and corporate profit on 1 January 2007 and promised to cut it to 10% in 2008. Albania has implemented a 10% flat tax from 2008. Bulgaria applies flat tax rate of 10% for corporate profits and personal income tax since 2008. In the United States, while the Federal income tax is progressive, eight states — Colorado, Illinois, Indiana, Massachusetts, Michigan, North Carolina, Pennsylvania, and Utah — tax household incomes at a single rate, ranging from 3.07% (Pennsylvania) to

title: Income tax in the United States

text: subject to limits. Capital gains are taxable, and capital losses reduce taxable income to the extent of gains (plus, in certain cases, $3,000 or $1,500 of ordinary income). Individuals currently pay a lower rate of tax on capital gains and certain corporate dividends. Taxpayers generally must self assess income tax by filing tax returns. Advance payments of tax are required in the form of withholding tax or estimated tax payments. Taxes are determined separately by each jurisdiction imposing tax. Due dates and other administrative procedures vary by jurisdiction. April 15 following the tax year is the last day for individuals

title: Income tax in Scotland

text: Income tax in Scotland Income tax in Scotland is a tax of personal income gained through employment. This is a tax controlled by the Scottish Parliament, and collected by the UK government agency HM Revenue & Customs. As proposed in the Scottish 2018-19 budget, the Scottish income tax system will become significantly different from the rest of the United Kingdom. When the devolved Scottish Parliament was set up in 1999, the Scottish Parliament had the power to vary the rate of income tax by 3% (in either direction) from the rates applied in the rest of the UK. This power

title: Income tax in the United States

text: the total income tax revenue, while earning 35% of the income reported. The top 10% paid 70%, earning 46% and the top 25% paid 86%, earning 67%. The top 50% paid 97%, earning 87% and leaving the bottom 50% paying 3% of the taxes collected and earning 13% of the income reported. From 1979 to 2007 the average federal income tax rate fell 110% for the second lowest quintile, 56% for the middle quintile, 39% for the fourth quintile, 8% for the highest quintile, and 15% for the top 1%, with the bottom quintile moving from a tax rate of

title: State income tax

text: on corporate capital), and especially the defining feature of a "modern" income tax, central administration by bureaucrats rather than local elected officials. The twin revenue-raising successes of Wisconsin's 1911 and the United States' 1914 income taxes prompted imitation. Note that writers on the subject sometimes distinguish between corporate "net income" taxes, which are straightforward corporate income taxes, and corporate "franchise" taxes, which are taxes levied on corporations for doing business in a state, sometimes based on net income. Many states' constitutions were interpreted as barring direct income taxation, and franchise taxes were seen as legal ways to evade these bars.

title: Hall income tax

text: whose total annual income is $33,000 or less ($59,000 for joint filers) are not subject to the Hall income tax. Some interest and dividend income received by quadriplegics also is exempt. Evasion of the Hall income tax may be prosecuted as a Class E felony, with penalties of up to two years in state prison and up to $3000 in fines. The Tennessee Department of Revenue uses Internal Revenue Service data to assist in identifying taxable income that is not being reported. The Hall income tax accounts for about 2% of Tennessee's state tax collections. Revenue from the Hall tax

title: IRS Volunteer Income Tax Assistance Program

text: IRS Volunteer Income Tax Assistance Program The Volunteer Income Tax Assistance (VITA) program is an initiative sponsored by the Internal Revenue Service. Founded in 1971 by Gary Iskowitz at California State University, Northridge. Since the 1970s the program has blossomed to several thousand sites nationwide partnering with non-profit organizations, city governments, and major public universities to file millions of returns every year. In Tax Year 2015 3.7 million returns were filed with a 94% accuracy rate according to Frank Nolden, Director of Stakeholder Partnerships, Education, and Communication/SPEC. The program is intended to service low to moderate-income tax payers, which the

title: State income tax

text: Depression started: A "mirror" tax is a tax in a U.S. dependency in which the dependency adopts wholesale the U.S. federal income tax code, revising it by substituting the dependency's name for "United States" everywhere, and vice versa. The effect is that residents pay the equivalent of the federal income tax to the dependency, rather than to the U.S. government. Although mirroring formally came to an end with the Tax Reform Act of 1986, it remains the law as seen by the U.S. for Guam and the Northern Mariana Islands because conditions to its termination have not yet been met.

title: Income tax in Scotland

text: was specifically authorised by the second question of the 1997 devolution referendum. In any event, no Scottish Government ever chose to use the variable rate, and left tax rates the same as they were in the rest of the UK. Following the passage of the Scotland Act 2012, the Scottish Parliament was given greater powers over income tax. In the 2016/17 tax year it had to set a Scottish Rate of Income Tax (SRIT). The idea of the power was that the UK tax rate would be reduced by 10%, with the block grant being reduced by an equivalent amount.

title: Income tax in Australia

text: which the standard is 2% of taxable income. As with many other countries, income tax is withheld from wages and salaries in Australia, often resulting in refunds payable to taxpayers. An employee must quote to employers their Tax File Number (TFN) so the employer can withhold tax from their pay. While it is not an offence to fail to provide an employer, a bank or financial institution with a TFN, in the absence of this number, payers are required to withhold tax at the rate of 47% (the highest marginal rate plus Medicare levy) from the first dollar. Likewise, banks

title: Income tax in Australia

text: however the base rate entity threshold (the aggregated annual turnover threshold under which entities will be eligible to pay a lower tax rate) will continue to rise. Capital gains tax (CGT) in Australia is part of the income tax system rather than a separate tax. Capital gains tax was introduced by the Hawke Labor Government in September 1985 and allowed for indexation of the cost base of the capital asset to the Consumer Price Index, to account for annual price inflation. Net capital gains (after concessions are applied) are included in a taxpayer's taxable income and are taxed at marginal

title: Lifetime income tax

text: would make the first 8-10 years of the average Canadian's working life income tax-free. After that point, each next $250,000 of lifetime earnings would taxed at a progressively higher rates (14% rate until reaching $500,000, 20% until reaching $750,000, 24% until reaching $1 million, and 27% above $1 million). Critics argued that the system would actually increase taxation complexity, increase effective tax burdens, and increase taxation on older people and single families. Stephen Harper won the leadership election on the first ballot and Clement's ideas received no further significant airing. Lifetime income tax Lifetime income tax is a proposal for

title: Income tax in Australia

text: rates, but is calculated automatically by the ATO when a tax return is lodged. Individuals under 18 years of age are taxed differently from adults. This rate does not apply to "excepted" income, which includes employment income and inheritances. Financial year 2018-19 The Medicare levy does not apply to non-residents, and a non-resident is not entitled to the low income tax offset. For prior tax years, see . Income tax on wages is collected by means of a withholding tax system known as Pay-as-you-go (PAYG). For employees with only a single job, the level of taxation at the end of

title: Income tax

text: of production (typically land and slaves) were all common. Practices such as tithing, or an offering of first fruits, existed from ancient times, and can be regarded as a precursor of the income tax, but they lacked precision and certainly were not based on a concept of net increase. The first income tax is generally attributed to Egypt. In the early days of the Roman Republic, public taxes consisted of modest assessments on owned wealth and property. The tax rate under normal circumstances was 1% and sometimes would climb as high as 3% in situations such as war. These modest

title: Hall income tax

text: there were bills to raise state government revenue by reducing the fraction of the Hall tax that is distributed to local governments. The proposals for major changes to the Hall tax failed because of the lack of alternative sources of revenue. The Hall tax is Tennessee's only tax on personal income; the state does not levy a general personal income tax. As of 1974, the Tennessee Supreme Court had consistently held that the state constitution authorized only three types of taxes: privilege taxes, "ad valorem" property taxes, and a tax on income from interest and dividends. In decisions in 1932