---
name: progressive-tax-bracket-math
source: https://app.decimal.ai/s/progressive-tax-bracket-math@1/SKILL.md
source_sha256: 2d5bc67bf2ed
---

**CHECKLIST FOR PROGRESSIVE TAX CALCULATIONS**

**1. Extract and Convert Data**
*   Identify the total taxable income.
*   List all tax brackets with their Lower Bound, Upper Bound, and Tax Rate.
*   Convert all percentage tax rates to decimals (e.g., 10% = 0.10).

**2. Calculate Bracket 1 (Lowest Bracket)**
*   Determine the income within this bracket: `Amount_1 = MIN(Total Income, Upper Bound_1)`.
*   Calculate tax for this bracket: `Tax_1 = Amount_1 × Rate_1`.
*   *Rule:* Keep the exact value. **DO NOT ROUND.**

**3. Calculate Middle Brackets (Iterate for each)**
*   Check if `Total Income > Lower Bound_i`. If no, stop calculating brackets.
*   If yes, determine the income within this bracket: `Amount_i = MIN(Total Income, Upper Bound_i) - Lower Bound_i`.
*   Calculate tax for this bracket: `Tax_i = Amount_i × Rate_i`.
*   *Rule:* Keep the exact value. **DO NOT ROUND.**

**4. Calculate Top Bracket (Unlimited Upper Bound)**
*   Check if `Total Income > Lower Bound_top`. If no, skip this step.
*   If yes, determine the income in this bracket: `Amount_top = Total Income - Lower Bound_top`.
*   Calculate tax for this bracket: `Tax_top = Amount_top × Rate_top`.
*   *Rule:* Keep the exact value. **DO NOT ROUND.**

**5. Summation**
*   Add all the exact, unrounded tax amounts together: `Total Tax = Tax_1 + Tax_2 + ... + Tax_top`.

**6. Rounding (Perform ONLY here)**
*   Round the `Total Tax` to the nearest cent (exactly two decimal places). 

**7. Final Output**
*   Output *only* the requested final value (e.g., the exact dollar amount) with no extra words, symbols, or explanations, matching the prompt's formatting constraints.