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. Tax ...
. The income tax threshold equates to the:
*
Personal allowance 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
Under United States tax law, the standard deduction is a dollar amount that non- itemizers may subtract from their income before income tax (but not other kinds of tax, such as payroll tax) is applied. Taxpayers may choose either itemized deduc ...
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 2023–24.
*Tax-free threshold in Greece, which was €9,545 in 2016.
*Tax-free threshold in Poland was 30,000 PLN in 2022.
See also
*
Basic income guarantee
*
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 ...
*
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. T ...
*
Tax exemption
Tax exemption is the reduction or removal of a liability to make a compulsory payment that would otherwise be imposed by a ruling power upon persons, property, income, or transactions. Tax-exempt status may provide complete relief from taxes, redu ...
References
{{Tax resistance
threshold