exemption threshold

An exemption threshold is the minimum amount of income or value at which a person or entity is not required to pay taxes or fees. If your earnings or assets fall below this threshold, you are typically excluded from certain tax obligations, providing relief to those with lower incomes. It serves as a baseline to ensure that people with modest earnings are not burdened by taxes, making the tax system more equitable. The specific threshold varies depending on the country, type of tax, and current regulations.