A tax whose rate increases as income increases is

A tax whose rate increases as income increases is called a progressive tax. This means that the more income an individual or entity earns, the higher the percentage of their income they are required to pay in taxes. The aim of a progressive tax system is to ensure that those who can afford to pay more contribute a larger share of their income to fund government services and programs, while those with lower incomes pay a smaller share. The opposite of a progressive tax is a regressive tax, where the tax rate decreases as income increases.