Meaning
These defined income ranges help clarify how your earnings are taxed.Definition
A tax bracket is a segment of taxable income subject to a specific government-set tax rate.How It Works
Your income is divided into these ranges. Only the portion of income within a specific bracket is taxed at that bracket’s rate, not your full income.Progressive Tax System Connection
Tax brackets are essential for a progressive tax system, where higher earners pay a greater percentage of their income in taxes.Author
