The income tax threshold is the income level at which a person begins paying
income taxes
An income tax is a tax imposed on individuals or entities (taxpayers) in respect of the income or profits earned by them (commonly called taxable income). Income tax generally is computed as the product of a tax rate times the taxable income. Ta ...
. The income tax threshold equates to the:
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Personal allowance
In the UK tax system, personal allowance is the threshold above which income tax is levied on an individual's income. A person who receives less than their own personal allowance in taxable income (such as earnings and some benefits) in a give ...
in the UK, which is £12,500 for 2019/20.
*Basic allowance in Germany, which is €9,408 in 2020.
*Income tax threshold in France, which was €6,088 in 2012.
*The
standard deduction in the US, which was $12,000 in 2018 for a single person.
*Basic personal amount in Canada, which was C$11,809 in 2018.
*Tax-free threshold in Australia, which was A$18,200 in 2012-13.
*Tax-free threshold in Greece, which was €9,545 in 2016.
*Tax-free threshold in Poland is 30000 PLN in 2022.
See also
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Basic income guarantee
Universal basic income (UBI) is a social welfare proposal in which all citizens of a given population regularly receive an unconditional transfer payment, that is, without a means test or need to work. It would be received independently of a ...
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Tax bracket
Tax brackets are the divisions at which tax rates change in a progressive tax system (or an explicitly regressive tax system, though that is rarer). Essentially, tax brackets are the cutoff values for taxable income—income past a certain poin ...
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Taxable income Taxable income refers to the base upon which an income tax system imposes tax. In other words, the income over which the government imposed tax. Generally, it includes some or all items of income and is reduced by expenses and other deductions. Th ...
References
{{Tax resistance
threshold