Taxes
Progressive tax
Each slice of income is taxed at its bracket's rate and the results are added.
The Formula
Tax = sum over brackets of (slice x rate)
Each slice of income is taxed at its bracket's rate and the results are added.
| Symbol | Meaning | Unit | Notes |
|---|---|---|---|
| s | Slice of income | currency | Income falling within one bracket. |
| r | Bracket rate | rate | Rate applied to that slice. |
What Each Symbol Means
scurrency
Slice of income
Income falling within one bracket.
rrate
Bracket rate
Rate applied to that slice.
See It Worked With Real Numbers
A formula on its own does not tell you which number goes where. The how to calculate tax bracket page applies this equation to a concrete case, shows every intermediate step, and names the mistakes that produce a wrong answer even when the algebra is right.
Where This Formula Appears
This equation is the working core of How To Calculate Tax Bracket, filed under Finance. Every number the guide produces comes from substituting into this one line.