A tax bracket refers to one of the income ranges in a progressive tax system where each range is associated with a specific rate of tax. In this system, as an individual's income increases, so does the tax rate they are subjected to. For example, in a hypothetical tax system, income from $0 to $10,000 might be taxed at 10%, $10,001 to $30,000 at 15%, and anything above $30,000 at 20%. This does not mean all income is taxed at the highest rate that applies, but rather that only the income exceeding the thresholds for each bracket is taxed at its respective higher rates. For instance, if someone earns $40,000, their taxes might consist of 10% on the first $10,000, 15% on the next $20,000, and 20% on the final $10,000. This tiered system ensures a progressively higher tax impact on individuals with higher incomes, fostering equitable taxation. Additionally, tax brackets are influenced by filing status (e.g., single, married filing jointly, etc.), with varying brackets and rates applicable to each status. Related terms include "Income Tax" and "Marginal Tax Rate."