![]() ![]() ![]() If you have $15,000 of taxable income, you have a 12% marginal tax rate, but your effective tax rate is lower. In 2022, if you’re single and have $15,000 of taxable income, you’re in the 12% tax bracket, while if you’re single and have taxable income of $600,000, you’re in the 37% tax bracket.īut this doesn't mean that all your income is taxed at that rate, as there's a difference between a marginal tax rate and an effective tax rate. There are graduated tax brackets, with rates ranging from 10% to 37%.įor the 2022 tax year (tax returns filed in 2023), those tax brackets are: Tax Rate In the U.S., the federal income tax is progressive. But what is a progressive tax? And how does it compare to a regressive or flat tax? What is a progressive tax?Ī progressive tax is when the tax rate you pay increases as your income rises. ![]() The taxes you pay on your income and purchases can take several forms, including progressive tax, regressive tax, and flat taxes. ![]()
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