People are motivated to file to get their tax refunds, but even people with no income should file a tax return to collect refundable tax credits they may be eligible for. Income from Income to Tax rate $0 $58,523 14% $58,523.01 $117,045 20.5% $117,045.01 $181,440 26% $181,440.01 $258,482 29% $258,482.01 Unlimited 33%The lowest federal tax rate has been reduced to 14% for the full year for everyone. It will rise to 1% from 2026 to 2030 and is used when non-refundable tax credits are higher than the first income tax bracket threshold, which is $58,523. Costs of tuition fees, medical expenses, charitable donations, and multiple disability tax credits could account for some of those high claims. The Alternative Minimum Tax is applied when taxable income falls into the 29% tax bracket ($181,440) and certain tax preferences apply, such as non-refundable tax credits for charitable donations.