Confused by what percentage of your income goes to taxes and why it does not match the rate in the mh table? Here are the basics what is my tax rate if i dont make money how income tax rates work. An income tax rate is simply the percentage of your income that a government takes in taxes. In the United States, a single income tax rate doesn’t usually apply to your entire income, but rather various rates will apply to different portions maake your «taxable income»—whatever is left over after you’ve claimed all the deductions and exemptions for which you are eligible. The number of different tax rates and the income levels at which they apply vary widely. The federal government and most states use a system of «progressive» income tax rates. This means that as your taxable income increases, so does your maximum tax rate. However, as taxable income increases, you are subject to tax rates of 12, 22, 24, 32, 35, or 37 percent with the higher rates only applying...