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marginal tax rate

Cultural  
  1. 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.


Example Sentences

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In May, Hawaii boosted its top marginal tax rate to 13% from 11% for individuals with income of more than $500,000.

From Barron's Jun. 26, 2026

Next year, households paying the top 37% marginal tax rate can deduct 35% across all their deductions.

From MarketWatch Dec. 1, 2025

Any money that is left over at the end of 10 years is pulled all at once and taxed at the marginal tax rate.

From The Wall Street Journal Nov. 16, 2025

I'll talk to other people, from a different strain in the party, who’ll talk about things like raising the top marginal tax rate.

From Salon Jun. 17, 2025

Let subsistence B be exempt from taxation so that x = B, and let the marginal tax rate be 50%.

From Definition & Reality in the General Theory of Political Economy by Thomas Colignatus

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