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How do different tax brackets work with income?


what are the different brackets?

The more taxable income you have, the higher the tax bracket.
Can vary between 0% to 39%. of taxable income.
They call it a Tax Bracket, but actually it is just a higher percentage of tax you have to pay, based on the amount of income you have.

eg ----
If you pay 15% of your income for taxes,
and I pay 25% for taxes, then I would say to you that I am in a Higher Tax Bracket than you are.
I am aware that the tax brackets in the U.S are the same to those in the UK, they work like this:

Everyone recieves 5k which in non-taxable, then it goes up from there, between 5k-7k you get taxed at 10%, then between 7k-35k you are taxed at 35%, anything over 35k is taxed at 40%. therefore it works like this:

You recieve 50k a year, the first 5k is tax free.

50-5 = 45k taxable income

2k of your income is taxed at 10% (2,000x0.10 = 200), then 28k is taxed at 35% (28,000x0.35 = 9,800), and 10k is taxed at 40% (10,000x0.4 = 4,000).

Total tax = 200+9,800+4,000=14,000
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