Important Tax Rates

It helps to understand the system you're working within. Here's an overview of important tax rates.

Income Tax	10%–37% federally, depending on taxpayer income + state income tax	Earnings, Interest, Rent, Lottery winnings, All other income except capital gains	Gifts, Inheritances, Life insurance, Exempt Income (e.g., Muni Investment Income)
Payroll Tax	15.3% = 12.4% Social Security up to $184,500 + 2.9% Medicare (+ additional 0.9% if income > $200k single / $250k MFJ). Half paid by employee, half by employer; Self-employed pay entirety	W-2 wages, Self-employment income	The 12.4% Social Security tax only applies to the first $184,500 of earnings
Capital Gains Tax	0%–20% federally, depending on taxpayer income + state capital gains tax	Profits from the sale of investments	Unrealized gains
NIIT	3.8% on lesser of NII or MAGI above threshold ($200k single / $250k MFJ)	Interest, Dividends, Capital gains, Rental income, Royalties, Passive income	Wages, Self-employment income, Active business income, Retirement distributions, Tax-exempt interest
Estate & Gift Tax	40% flat rate on gifts and estates above $15 million lifetime exemption	Property owned at death, Gifts made during life, Transfers > lifetime exemption	Transfers to spouses, Transfers to charity, Gifts for education or medical expenses, Any other gifts of $19,000 or less each year

Educational purposes only. This is general information and is not tax, legal, or investment advice.