A fuller guide to this term is on the way. In the meantime, the related terms below explain the ideas around it.
Related MoneyPedia terms
- Tax BracketA range of income taxed at a specific rate, with higher slices of your income taxed at higher percentages.
- Progressive TaxA tax system where the rate rises as income increases, so higher earners pay a larger share of each added dollar.
- Taxable IncomeThe portion of your income left after deductions that the government actually applies tax rates to.
- Tax LiabilityThe total amount of tax you owe to the government for a given year before subtracting payments already made.
- Tax DeductionAn expense you can subtract from your income to lower the amount that gets taxed.
More in Taxes
1099Adjusted Gross Income (AGI)Alternative Minimum Tax (AMT)Capital Gains TaxChild Tax CreditDependent
Plain-English education — not personalized legal, tax, or investment advice.