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At a glance:
- Tax brackets determine the tax rate you pay on each portion of your income.
- The U.S. has a progressive income tax system, meaning higher incomes are taxed at higher rates.
- Your tax rate only applies to the income within that bracket, not your entire income.
- Your effective tax rate is the total tax liability divided by your taxable income.
blog.taxact.com/how-tax-brackets-work/- People also ask
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