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

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marginal tax rate

My financial adviser is recommending Roth conversions, but I’m a retired CPA, and based on my projections, I don’t expect my marginal tax rate to be materially different in the future.

From MarketWatch ● Aug. 15, 2026

On top of that, retirees gradually lose the new $6,000 senior tax credit as their adjusted gross income rises, making the marginal tax rate as high as 46% for a married couple, he says.

From Barron's ● Jun. 24, 2026

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

Work incentives may be more guided by the average tax rate rather than the statutory marginal tax rate.

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

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