What characterizes a tax bracket?

A tax bracket is characterized by a range of income that is taxed at a specific rate. This means that different portions of a taxpayer's income are taxed at different rates, which allows for a progressive tax system where higher income levels are taxed at higher rates. Each bracket sets the income range that will be taxed at a designated percentage; for instance, an initial portion of income might be taxed at a lower rate, and as income increases into higher brackets, higher rates will apply to the income within those ranges.

Other choices do not reflect the nature of a tax bracket. A fixed tax rate for all income levels would imply a flat tax system, which does not use brackets. Exemptions from taxation for certain taxpayers refer to specific exclusions based on individual circumstances rather than income levels. Finally, the standard deduction is a set amount that reduces the taxable income but is not related to how tax rates are applied across different income ranges.