Topic: Taxes, tax-related vocabulary 1

VOCABULARY REVIEW: Taxes

Need to review common terms relating to taxes, filing your tax return, etc.? We've got you covered!

Personal income tax
Definition:
Personal income tax is the money individuals pay to the government based on how much income they earn. Governments use this tax to fund public services such as education, healthcare, and infrastructure.
Example:
People pay personal income tax every year on the money they earn from work.

Income
Definition:
Income is the money a person receives, usually from work, business, or investments. It can include salary, wages, bonuses, and interest.
Example:
Her main source of income is her full-time job.

Taxpayer
Definition:
A taxpayer is a person who is required to pay taxes to the government, usually because they earn income or own property.
Example:
Every taxpayer must report their income honestly.

Tax rate
Definition:
A tax rate is the percentage of income that must be paid as tax. Different levels of income may be taxed at different rates.
Example:
People with higher incomes often pay a higher tax rate.

Tax bracket
Definition:
A tax bracket is a range of income that is taxed at a specific rate. As income increases, it may move into higher tax brackets.
Example:
After her promotion, part of her income moved into a higher tax bracket.

(c) 2007-2026 BusinessEnglishSite.com (a division of LearnEnglishFeelGood.com). All rights reserved. Please read our content policy before sharing our content.