Total tax

Total tax,

Definition of Total tax:

  1. The total amount owed by a taxpayer as calculated by the tax authority during an accounting period. This number is compared to the amount of taxes paid, including all credits and deductions, to determine if a tax refund is due or payment owed.

  2. Total tax, in the context of personal income tax, is the composite total of all taxes owed by a taxpayer for the year.

  3. The total tax is progressive and based on the payer’s income. With the Tax Cuts and Jobs Act of 2017, the federal government authorized seven tax brackets ranging from 10 percent to 37 percent, starting in the 2018 tax year. The previous tax law also had seven brackets, but the rates and thresholds have changed.

Meaning of Total tax & Total tax Definition