What is Tax Rate Explained.
What is Tax Rate: The percentage of tax paid for different levels of income
Tax Rate is the percentage at which an individual or corporation is taxed. The tax rate is the tax imposed by the federal government and some states based on a corporation's earnings or an individual’s taxable income.
The current U.S. IRS Tax Code implements a progressive tax rate system, where the percentage of taxes paid increases as taxable income increases.
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