Individual Income Tax Rates

Individual income tax rates are the percentages of your taxable income that you pay to the government. Instead of a single rate, most countries use a progressive system, meaning higher income levels are taxed at higher rates. Your total income is divided into brackets, each with its own rate, so you pay a different percentage on each portion. This structure aims to ensure fairness by taxing higher earners more. Ultimately, your effective tax rate (average rate paid) depends on how much of your income falls into each bracket.