Marginal Tax Rate

Filed Under: Business

1 definition found for this term.
Definitions are presented in the order source books were published (most recent first).

The ratio of the increase in tax to the increase in the tax base (i.e., the tax rate on each additional dollar of income). For example, in the case of an indi­vidual with a marginal income tax rate of 33 percent, each additional dollar of income above a threshold would be subject to an income tax of 33 cents.

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