What are non-linear tax brackets?

Non-linear tax brackets are tax rules that change how much you pay based on your income level, like having different prices for different parts of a big toy.

Imagine you're buying a giant puzzle with 100 pieces. The first 20 pieces cost $1 each, but the next 30 pieces cost $2 each, and the last 50 pieces cost $3 each. So if you buy all 100 pieces, you pay more for the later ones, it’s not a fixed price for every piece.

That’s like non-linear tax brackets: when your income goes up, some parts of that extra money get taxed more than others.

Think about earning money from doing chores. If you earn $10, you might pay 10% in taxes. But if you earn $50, the first $10 still gets taxed at 10%, but the next parts, like from $11 to $50, get taxed at a higher rate, say 20%. So you’re paying more on that extra money.

This makes your tax amount grow faster as you earn more, just like buying those expensive puzzle pieces later.