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.

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Example Sentences

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

Taxes are paid when each conversion is done, and if there was any money left in the traditional IRA at the end of 10 years, the money is pulled and taxed at the marginal tax rate.

From The Wall Street Journal

That totals more than $500 in taxes for a $1,000 gain in income—or a combined marginal tax rate over 50%.

From The Wall Street Journal

The top marginal tax rate remains 37% for single filers with incomes over $640,600 and for married couples over $768,700.

From Barron's

For 2026, the top marginal tax rate remains 37% for individual taxpayers with incomes greater than $640,600 or $768,700 for married couples filing jointly.

From Barron's