Tax
Progressive tax
Each bracket slice multiplied by its own rate and summed.
The Formula
Tax = 0.10 x b1 + 0.12 x b2 + 0.22 x b3 + ...
Each bracket slice multiplied by its own rate and summed.
| Symbol | Meaning | Unit | Notes |
|---|---|---|---|
| r | Bracket rate | percent | Rate applied to that band. |
| b | Bracket amount | currency | Income falling inside that band. |
What Each Symbol Means
rpercent
Bracket rate
Rate applied to that band.
bcurrency
Bracket amount
Income falling inside that band.
See It Worked With Real Numbers
A formula on its own does not tell you which number goes where. The how to calculate income tax 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 Income Tax, filed under Finance. Every number the guide produces comes from substituting into this one line.