Tax Brackets
The income ranges, each taxed at a progressively higher rate, that make up the U.S. graduated income tax.
Tax brackets are the income bands of a graduated tax system. Each band has its own rate, and only the income that falls within a band is taxed at that band's rate. Moving into a higher bracket doesn't re-tax your whole income at the higher rate — only the dollars above the threshold.
Brackets are adjusted for inflation annually, and the thresholds differ by filing status (single, married filing jointly, head of household). Because the rates step up, a great deal of tax planning is about controlling which bracket your next dollar lands in — through the timing of income, deductions, conversions, and withdrawals.
This definition is general information to help you understand a term, not financial, tax, or legal advice. Figures that change year to year (limits, thresholds, rates) should be confirmed against current official sources. For guidance on your situation, a licensed fee-only fiduciary is the right next step.