Tiered taxes are where one rate applies to amounts below a certain threshold and another for amounts above that threshold, there can potentially be multiple tiers.
- below 6,000.99 = 7%
- 6,001-12,000.99 = 6%
- 12,001 above = 5%
In the above scenario an item costing 20,000 would be taxed at 6000*.07+6000*.06+8000*.08 = $1420
I'm looking for a real place in the world where this sort of rule applies. Specifically I'm looking to understand how the above rule interacts with the typical makeup of sales tax in the United States where the overall tax rate is composed of various sub-tax rates.
Example: Total Rate 8.25% is made up of
- State: 3%
- County: 2%
- School District Tax Area: 2%
- City: 1%
- Special Utility District Tax Area: .25%
It is possible that there is no place that both has tiered taxes and has sub-tax rates. Unfortunately my google-fu has failed me and I have been unable to even figure out if tiered taxes actually exist or are just a thing that some tax software programs support.