Glossary
Marginal Tax Rate
The rate applied to your next dollar of income - your top bracket. Because brackets are progressive, only the income above each threshold is taxed at the higher rate, so your marginal rate exceeds your effective rate.
The rate applied to your next dollar of income - your top bracket. Because brackets are progressive, only the income above each threshold is taxed at the higher rate, so your marginal rate exceeds your effective rate.