Understanding Tax Rates
Tax rates vary based on income level, filing status, and type of income. The overview below explains how federal tax rates generally work.
Individual Income Tax Rates
- Federal taxes use progressive tax brackets
- Different brackets for single, married, and head of household
- Only income within each bracket is taxed at that rate
Business & Self-Employment Taxes
- Self-employment tax applies to sole proprietors
- Corporate and pass-through entities are taxed differently
- Estimated tax payments may be required
Capital Gains & Other Income
- Short-term vs. long-term capital gains
- Rates vary depending on asset and holding period
- Often taxed differently than regular income
South Dakota Tax Note
South Dakota does not have a state income tax. Federal tax rates still
apply, and certain businesses may be subject to other state or local taxes.
This information is provided for general guidance only. Tax rates and
regulations are subject to change and vary by individual situation.
ACT Accurate Tax & Bookkeeping will review your circumstances to
determine how current tax rates apply to you.