Recent content by Muichiro

Withholding tax is a portion of an employee's salary or a payment to a contractor that is deducted by the payer and sent directly to the government as advance payment of income tax. It ensures tax collection at the source, helping individuals and businesses meet their tax obligations.

An excise tax is a tax placed on specific goods or activities, such as gasoline, alcohol, tobacco, or airline tickets. It’s usually included in the price of the product and is paid by the manufacturer or seller, not directly by the buyer—though the cost is often passed on to consumers.

There’s no specific start date for “no tax on tips” because tips are generally taxable income in the U.S. by law. You must report all tips to the IRS, and they are subject to federal income, Social Security, and Medicare taxes.

The 2025 U.S. federal income tax brackets for single filers are: 10%, 12%, 22%, 24%, 32%, 35%, and 37%, with rates increasing as income rises.