Tax Table

AAA

DEFINITION of 'Tax Table'

A table or chart displaying the amount of tax due based on income received. The tax rate may be shown as a discrete amount, a percentage rate, or a combination of both. Tax tables are used by individuals, companies and estates for both standard income and capital gains.

A typical tax table will show breakpoint income levels, above and below which different tax rates will apply.

INVESTOPEDIA EXPLAINS 'Tax Table'

Tax tables are used most often by individuals and companies with modest levels of income. High income earners, whether individuals or corporations, tend to use more detailed tax rate schedules in conjunction with itemized deductions.

Tax tables will change from year to year, and will vary from state to state. Investors should always be sure that they are using the correct tax tables based on their income sources and area of residence.

RELATED TERMS
  1. Preparer Tax Identification Number ...

    An Internal Revenue Service requirement implemented in 2011 that ...
  2. Income Shifting

    A strategy of moving a person's income from a high income bracket ...
  3. Tax Bracket

    The rate at which an individual is taxed. Tax brackets are set ...
  4. Tax Schedule

    A rate sheet used by individual taxpayers to determine their ...
  5. Capital Gains Tax

    A type of tax levied on capital gains incurred by individuals ...
  6. Federal Tax Brackets

    Income tax groupings specified by the Internal Revenue Service ...
Related Articles
  1. Retirement

    Tax Tips For The Individual Investor

  2. Retirement

    How IRA Contributions Affect Your Taxes

  3. Taxes

    10 Money-Saving Year-End Tax Tips

  4. Taxes

    Making Sense Of The Tax Code

Hot Definitions
  1. Capitulation

    When investors give up any previous gains in stock price by selling equities in an effort to get out of the market and into ...
  2. Turkey

    Slang for an investment that yields disappointing results or turns out worse than expected. Failed business deals, securities ...
  3. Conduit Issuer

    An organization, usually a government agency, that issues municipal securities to raise capital for revenue-generating projects ...
  4. Financing Entity

    The party in a financing arrangement that provides money, property, or another asset to an intermediate entity or financed ...
  5. Hyperinflation

    Extremely rapid or out of control inflation. There is no precise numerical definition to hyperinflation. Hyperinflation is ...
  6. Gross Rate Of Return

    The total rate of return on an investment before the deduction of any fees or expenses. The gross rate of return is quoted ...
Trading Center