Legal Definitions - tax-rate schedule

A tax-rate schedule is a chart or table used to calculate the amount of tax owed on a specific level of taxable income. It is based on the taxpayer's status, such as married filing jointly or single. The tax-rate schedule shows the tax rate that applies to each level of income, and the taxpayer uses this information to calculate their tax liability.

Let's say you are a single taxpayer with a taxable income of $50,000. You would use the tax-rate schedule to determine your tax liability. The schedule might look something like this:

Based on this tax-rate schedule, a single taxpayer with a taxable income of $50,000 would fall into the second tax bracket and owe 12% of their income in taxes, or $6,000.

Another example would be a married couple filing jointly with a taxable income of $100,000. They would use the same tax-rate schedule, but with different income thresholds for each tax bracket. Based on the schedule, they would fall into the fourth tax bracket and owe 24% of their income in taxes, or $24,000.

These examples illustrate how a tax-rate schedule is used to determine the amount of tax owed based on a taxpayer's income and filing status.