A tax rate is known as the percentage of your taxable income, which in a progressive system like that is used in the United States, may increase or decrease as the taxable income increases or decreases. Under this system, tax rate is based on the amount that is made by you, which is described in tax brackets.
Those people may have low tax rates who make very small amounts of money, and those will typically pay more in taxes who make a significant amount of money, unless they find tax loopholes or shelters by which they are allowed to invest or protect some of their money from being considered as taxable income.
In progressive system all your income isn’t all taxed at one single tax rate
Tax rates are not that simple. Typically all your income isn’t all taxed at one single tax rate but rather than that the money made below a tax bracket gets taxed at lower rates, and money that is above that bracket gets taxed at higher rates.
Flat tax system
In a flat tax system which is opposite to a progressive system, rate remains constant no matter what your income is. If flat tax is 10%, then you would be counting on owing 10% of your income in taxes, it doesn’t matter what you make.
