Taxes
Many people have no idea where their taxes go or how much it can impact their wealth. Are you one of them?
DID YOU KNOW?
Our taxes go to help fund essential services like healthcare, education, social security and more!
SCROLL OVER THE PIE CHART FOR MORE INFORMATION:
Health Insurance (24%)
Social Security (21%)
Defense (13%)
Economic Security Programs (8%)
Benefits for Veterans & Federal Retirees
Interest on Debt
Education
Transportation
Natural Resources & Agriculture
Science & Medical Research
Law Enforcement
International
All Other
As the need for these areas increases, it’s possible that our taxes will increase as well to help support these areas.
BUT...
Knowing where your taxes go is just one piece of the puzzle.
Here’s how income taxes affect your earnings and what you can actually keep.
2025 Income Tax Chart
| Tax Rate | Single Filer | Your Tax Due is: | Married filing separately | Your Tax Due is: | Head of household | Your Tax Due is: | Married filing jointly | Your Tax Due is: |
|---|---|---|---|---|---|---|---|---|
| 10% | Not over $11,600 | 10% of taxable income | Not over $11,600 | 10% of taxable income | Not over $16,550 | 10% of taxable income | Not over $23,200 | 10% of taxable income |
| 12% | Over $11,600 but not over $47,150 | $1,160 plus 12% of the excess over $11,600 | Over $11,600 but not over $47,150 | $1,160 plus 12% of the excess over $11,600 | Over $16,550 but not over $63,100 | $1,655 plus 12% of the excess over $16,550 | Over $23,200 but| not over $94,300 | $2,320 plus 12% of the excess over $23,200 |
| 22% | Over $47,150 but not over $100,525 | $5,426 plus 22% of the excess over $47,150 | Over $47,150 but not over $100,525 | $5,426 plus 22% of the excess over $47,150 | Over $63,100 but not over $100,500 | $7,241 plus 22% of the excess over $63,100 | Over $94,300 but not over $201,050 | $10,852 plus 22% of the excess over $94,300 |
| 24% | Over $100,525 but not over $191,950 | $17,168.50 plus 24% of the excess over $100,525 | Over $100,525 but not over $191,950 | $17,168.50 plus 24% of the excess over $100,525 | Over $100,500 but not over $191,950 | $15,469 plus 24% of the excess over $100,500 | Over $201,050 but not over $383,900 | $34,337 plus 24% of the excess over $201,050 |
| 32% | Over $191,950 but not over $243,725 | $39,110.50 plus 32% of the excess over $191,950 | Over $191,950 but not over $243,725 | $39,110.50 plus 32% of the excess over $191,950 | Over $191,950 but not over $243,700 | $37,417 plus 32% of the excess over $191,950 | Over $383,900 but not over $487,450 | $78,221 plus 32% of the excess over $383,900 |
| 35% | Over $243,725 but| not over $609,350 | $55,678.50 plus 35% of the excess over $243,725 | Over $243,725 but not over $365,600 | $55,678.50 plus 35% of the excess over $243,725 | Over $609,350 | $181,954.50 plus 37% of the excess over $609,350 | Over $731,200 | $196,669.50 plus 37% of the excess over $731,200 |
When you sell an asset for a profit, you will need to pay capital gains tax, either short-term or long-term.
WHAT IS A CAPITAL GAINS TAX?
A capital gains tax is a tax you pay when you make a profit from selling something like a house, stocks, or another investment. You only pay this tax on the money you made above what you originally paid for the item.
Long-Term Capital Gains Tax Rates
If you own something for more than a year before selling it, you pay less tax on the profit.
| Rate | Single | Married Filing Jointly | Married Filing Separately | Head of Household |
|---|---|---|---|---|
| 0% | $0 - $47,025 | $0 - $94,050 | $0 - $47,025 | SO - $63,000 |
| 15% | $47,025 - $518,900 | $94,050 - $583,750 | $47,025 - $291,850 | $63,000 - $551,350 |
| 20% | $518,900+ | $583,750+ | $291,850+ | $551,350+ |
Self-Check: Are You Making the Same Mistakes?
Retirement doesn’t mean tax-free living. Fewer write-offs means more tax pressure!
Ray: "I'll be in a lower tax bracket when I retire."
Ray always thought retirement meant less income and, therefore, less taxes. After retiring as an accountant, Ray was surprised to see that his tax bill hadn’t decreased as much as he expected.
With his mortgage paid off and his kids grown, Ray lost deductions. Plus, his income from Social Security, 401(k) withdrawals, and a side gig consulting kept him in the same tax bracket. Ray learned the hard way that fewer deductions and steady income streams in retirement meant he wasn’t in the lower tax bracket he had once assumed.
Alicia: "Social Security benefits aren’t taxable."
Alicia retired early, excited to finally claim her Social Security benefits. She was under the impression that her Social Security income would be tax-free, a nice supplement to her part-time job and withdrawals from her 401(k).
What Alicia didn’t expect was that because of her other income sources, up to 85% of her Social Security benefits were taxed. Alicia was shocked when her tax return came, and she realized that even her "safe" Social Security was not fully shielded from taxes.
Steve: "All of my retirement income is taxed the same."
Steve saved diligently for retirement through a traditional 401(k) and a Roth IRA. When he retired, he started regularly withdrawing from his 401(k), not realizing that every withdrawal was taxed as regular income.
It wasn’t until later that Steve discovered his Roth IRA withdrawals were tax-free. However at that point, he had already faced higher taxes than expected.
You are not too young to start understanding taxes.
Prepare for retirement by understanding how taxes will affect your income. Review your income sources and consider working with a financial advisor to make sure your plan is tax-smart. Small steps now can save you big later!
The Estate Tax Trap
Think your heirs will get everything? These four things to know about estate taxes might surprise you!
Another way to lose your money is NOT to protect it from inflation, also known as the "SILENT TAX"
Over the past 60 years, prices of goods have tripled—or worse!
| Items | 1960 | 2000 | NOW |
|---|---|---|---|
| One Dozen of Eggs | $0.57 | $0.91 | $3.08 |
| Gallon of Milk | $0.49 | $2.78 | $4.36 |
| Gallon of Gasoline | $0.31 | $1.56 | $3.80 |
| House (1,500 sq. ft.) | $12,700 | $166,000 | $384,000 |
Without proper planning, you can lose 10% to 30% of your wealth in unnecessary taxes.
IT’S YOUR CHOICE…
DONT’ LET POOR PLANNING COST YOU.
Taxes are inevitable, but losing a significant portion of your wealth to taxes doesn’t have to be. Without a solid tax strategy, you risk leaving a big chunk of your estate to the government rather than your loved ones.