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How Income Taxes Work

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If you've ever filled out a 1040, you know the U.S. tax system and the agency that keeps it going are complex and mystifying entities. Get the lowdown on this essential piece of the U.S. government.

How State Income Taxes Work

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State income taxes vary between states. Learn more about how state income taxes work at HowStuffWorks.

The Ultimate State Income Tax Quiz

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Do you realize that the amount of taxes you pay may vary significantly depending on which state you live in? Some states have high tax rates, whereas some have no personal income tax at all. Take our quiz to find out how tax rates in your state might affect you.

Could income tax be replaced by a consumption-based sales tax?

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A consumption-based tax, sometimes called the Fair Tax, is one alternative to the current U.S. tax system. Learn more about a consumption-based tax.

Is it true that only 53 percent of Americans pay income tax?

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Is it true that only 53 percent of Americans pay income tax? Find out whether it's true that only 53 percent of Americans pay income tax.

What's the difference between a flat tax and a fair tax?

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The flat tax and fair tax are two suggestions people have made for reforming the tax code. Learn more about flat tax and fair tax.

How Discretionary Income Works

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Discretionary income is extra money don't need to spend, but it's used to monitor the economy. Learn more about discretionary income at HowStuffWorks.

The Ultimate Tax Brackets Quiz

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Depending on your income range, you will be taxed according to one of the tax brackets that exist today in the income tax system. Does it pay to work hard and get ahead, or will Uncle Sam just take anything extra that you earn? Take our quiz and find out whether ambition pays in light of today's tax reality.

How Tax Brackets Work

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Tax Brackets are ranges of income that are taxed at different rates. Find out which tax bracket you're in and learn the history behind tax brackets.

How Federal Taxes Work

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Federal taxes are somewhat complicated. Learn about how federal taxes work at HowStuffWorks.

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