What is the term used for each tax rate and taxable income amount listed on one line of a tax table?

The term that refers to each tax rate and taxable income amount listed on one line of a tax table is "tax bracket." A tax bracket indicates the range of income that is taxed at a particular rate, helping to define how much tax is owed based on income levels. Each bracket specifies a range of taxable income and the corresponding rate at which that income is taxed, allowing individuals and businesses to understand their tax liability in relation to different income tiers.

This concept is essential in progressive tax systems, where the tax rate increases as the taxable income rises. Tax brackets provide a straightforward way to apply these rates to individuals’ or entities’ incomes, ensuring they pay taxes fairly based on their earnings. Understanding how tax brackets function is crucial for effective tax planning and financial decision-making.