What it is:
A tax table shows the tax due for different income ranges.
How it works (Example):
Why it Matters:
Tax tables are where the rubber meets the road in the tax world. Though long, they lay out the tax owed for each level of taxable income. Remember, however, that taxable income is not the same as adjusted gross income (AGI). Taxable income is the amount of income subject to tax after the taxpayer has factored in all of his or her tax credits and deductions.