Definition of tax bracket in US English:
tax bracket
nountaks ˈbrakəttæks ˈbrækət
A range of incomes taxed at a given rate.
Example sentencesExamples
- From an economic point of view, only the marginal income is relevant, that is the income in the highest tax bracket.
- If tax brackets were never changed, over the next century, real income gains would push every American into the top tax bracket, even those with the lowest income.
- During World War II, policy makers pushed the income tax downward but also raised the top tax bracket, this time to 94%.
- The basic idea is that you are not taxed on the funds until you withdraw, at which point you are taxed at the rate of your income tax bracket.
- It assumes a lower tax bracket upon retirement or that taxes will not go up.