MARGINAL TAX RATE Definition & Meaning

marginal tax rate

The rate at which income over a certain amount is taxed. Although in general, graduated income taxes impose higher tax rates on higher incomes, the tax rate does not rise for each additional dollar earned. Rather, it rises by income brackets, and each tax rate applies only to income that falls in that bracket. For example, in 2002, the highest marginal federal tax rate was 38.5 percent, which for single taxpayers was imposed on income in excess of $54,000.

Discover More

Example Sentences

Examples have not been reviewed.

That includes higher standard deductions, a lower top marginal tax rate, bigger child tax credits, lower estate taxes and certain deductions tailored for small businesses.

From

Each bracket has a base tax amount in addition to a marginal tax rate.

From

The base tax amount for this income bracket is $340, which should be added to marginal tax rate.

From

The final step of the income tax calculation involves applying the marginal tax rate and base amount according to the appropriate bracket.

From

Bill Clinton signed a law in 1993 raising the top marginal tax rate for individuals to almost 40 percent.

From

Browse

�y��vlog

marginal tax rate

Example Sentences