Tax Bracket
Categories: Tax, Mutual Funds
The tax divisions that decide how much tax you'll pay. How is it determined? Your salary, champ.
That's why "tax bracket" is also used as a way to talk about how wealthy (or not) someone is. If someone says "he's in a higher tax bracket," it's a slightly more tactful way of saying that "he" is richer.
Example
If you make $0 to $8,700 and you're single, you fall into the lowest tax bracket; as of 2013, you pay a tax rate of 10%. If you make $35,350 to $85,650, you fall into another tax bracket entirely, and you pay 25%.