Tax Bracket
A range of income taxed at a specific rate in a progressive system.
A tax bracket is a range of income that is subject to a specific tax rate. In a progressive tax system, income is divided into brackets, with each bracket taxed at a progressively higher rate. Only the income within each bracket is taxed at that bracket's rate — not your entire income. This is a commonly misunderstood aspect of taxation.
Examples
- The US 22% bracket applies to income between $44,726 and $95,375 for single filers.