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.
- Marginal Tax RateThe tax rate applied to your last dollar of income, meaning the rate on your highest bracket.
- Regressive TaxA tax that takes a larger share of income from lower earners than higher earners, such as many sales taxes.
- State Income TaxA tax some states charge on your earnings, separate from federal income tax, with rates that vary by state.
- Taxable IncomeThe portion of your income left after deductions that the government actually applies tax rates to.
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.