How brackets work
Where progressive brackets apply, portions of taxable income can fall into different ranges, with each range subject to its applicable rate. Exact brackets, thresholds and rules depend on jurisdiction and tax year.
Marginal tax rate
The marginal rate generally describes the rate applying to the next portion of taxable income under the applicable bracket structure.
Effective tax rate
An effective rate generally compares a tax amount with a broader income measure. Because portions of income can be taxed differently, it can differ from the highest marginal rate that applies.
Do not use stale brackets
Tax thresholds and rules can change. For filing or consequential decisions, verify the current tax year using the relevant official tax authority.
Explore more concepts in the Numelios Taxes Center.
General tax education only. It is not tax advice and does not provide current filing thresholds for any specific jurisdiction.