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What are income tax brackets?

Answer: For taxation purposes, income taxes are paid at a given amount within a given income range. Within each tax bracket, an income dollar amount is taxed depending on the filing status of the taxpayer, such as whether the taxpayer is single, married filing jointly or separately, and/or as the head of household.

Each income tax bracket is given a marginal tax rate percentage figure. A taxpayer may fall in either the 10%, 15%, 25%, 28%, 33%, 35% or higher tax brackets.