The Truth About Tax Brackets

Do you know how income tax brackets really work? 

Find them puzzling? You’re not alone.

One common misconception is that you pay the highest rate on all your income. The reality is that there’s different rates for different buckets of income.

Check out this article to learn more: Income Tax Bucket

The included visual illustrates how tax rates step with each step up in income, rather than one lump sum rate across your entire income. With real examples, you'll come away with a better understanding of your effective (i.e., average) tax rate, which is what you should be looking at, not the tax rate on your last step in income.

For more clear and accurate guidance on your tax planning, I encourage you to reach out and schedule a no-cost consultation today!