Income brackets are ranges of income that categorize individuals or households based on their earnings. These brackets help in understanding economic status and are often used for tax purposes, government assistance programs, and economic analysis. For example, a person earning between $30,000 and $50,000 may fall into a specific income bracket that determines their tax rate. Governments and organizations use income brackets to assess the distribution of wealth within a population. By analyzing these brackets, policymakers can identify trends, allocate resources, and create programs aimed at reducing poverty or supporting low-income families. This information is crucial for economic planning and social services.