According to the online Master of Science in Analytics department at Villanova University, the US has one of the highest income tax rates of any country. The government charges up to 39.6% in federal income tax. There is also an additional state income tax of up to 13.3% and a local income tax of up to 3%. That said, there are ways to save on your income tax. For starters, you can fund an IRA and immediately save. You can also boost your retirement savings and switch to a Roth 401k. Both of these financial decisions can help you save on income tax further.
There are also ways to ern tax credits and qualify for other deductions. Tax credits alone can help you save up to $6,000 a year on income tax.
Be sure to learn more about income tax and other global taxes by reviewing the complete infographic from Villanova University.
