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Definition: The tax bracket refers to the marginal tax rate that an individual pays for a certain income tax level. For example, if you earn $50,000 per year, you would be in the 25% tax bracket.
StockJargon Advice: The United States has a progressive tax system that taxes individuals more if they earn higher incomes. However, it's important to know that being in the 25% tax bracket doesn't mean you'd pay exactly 25% in taxes. The reason is because this would punish those that just barely fell within a higher income tax bracket. So the way it works is that you pay a fixed amount up until your bracket and then the marginal rate (e.g. 25%) for anything over that.
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