Tax Bracket
Also called: tax rate, marginal tax rate
A range of income that is taxed at a set rate. When you earn more, only the money in the higher range is taxed at the higher rate.
Example
If a raise moves you into a new bracket, only the extra dollars get the higher rate, not your whole pay.
Why it matters
A raise will not make you take home less money because of brackets.
Want help with this?
Join Guapify free to ask questions about Tax Bracket, use free Money Tools and learn with people who get it.
Join Guapify freeOne tap with Google. No credit card.
Members get more
Keep learning
More in Taxes
Earned Income Tax Credit (EITC)
A tax credit for people who work and earn low to middle pay. It can mean a bigger refund, and it helps families with kids the most.
Tax Credit
Money taken right off the tax you owe. It is often worth more than a deduction.
Tax Refund
Money the government gives back if you paid too much tax during the year. It is your money coming back to you.
Tax Return
A form you send to the government each year. It shows what you earned and what you paid in tax.
For learning, not personal financial, tax or legal advice. Rules and limits can change each year, so check official sources (like IRS.gov or your plan's documents) or a trusted pro before big decisions.