The tax rate that applies to the next dollar of taxable income. If another dollar of taxable income is received in the same tax year, the number of cents that must be paid in additional income taxes is the same as the percentage of additional income that will be paid in taxes.

The marginal tax rate is the additional tax a taxpayer would pay if s/he earned one more dollar.

The rate of tax payable on the proportion of income derived by a person. In Australia at the time of going to print (April 1996), the highest marginal rate of income tax was 47% for income over $50,000, plus the Medicare Levy.

The additional tax that results from an additional dollar of taxable income at a given income level.

The highest percentage at which your income is taxed and is utilized to figure out taxes on your investment income.

The rate of income tax which, under the sliding scale in use for individuals in Australia, is payable in person in respect of each additional dollar of income earned in a financial year.

The tax rate you would owe on your next dollar of taxable income. This can be highly valuable information when you are making investment decisions. In the U.S. progressive income tax system, the marginal tax rate increases as income rises. So if you're thinking about realizing some short-term capital gains, buying fixed-income securities or prepaying your mortgage, you should consider what income tax bracket you're in first.

The amount of additional earnings taken by government. The taxpayer with $50,000 of income may face a 28 percent tax rate on the next dollar of income earned, even though the average tax rate for this taxpayer's income is 20 percent. The marginal tax rate affects incentives to offer additional labor and/or capital to the economy.

The highest tax rate applied to your last dollar of income.

The fraction of an additional dollar of income paid out in taxes.

'märj-nul · 'taks · rât/ The percentage amount of every dollar earned that a worker does not receive. As low-wage workers see their wages rise, they often receive very little of the increase wage. Low-wage workers face extremely high marginal tax rates due to the high level of government assistance they receive. As their incomes increase the benefit they receive from the food stamps program, the earned income tax credit and the temporary aid for needy families program all decrease. Some low wage workers face an MTR of over 100 percent. For every hour these workers work, they actually lose money.

The top rate of personal income tax charged on your last dollar of earnings.

The highest tax rate applicable to a person for paying income tax.

The amount of tax imposed on the next dollar of income earned by the taxpayer. In Canada's progressive system of combined federal and provincial taxes the rate increases as earnings rise.

The tax rate applicable to the next dollar of taxable income. It is calculated by adding a specific amount of gross income and determining the additional income taxes payable as a result of this additional income; then the total of the additional income taxes payable is divided by the additional gross income to determine the marginal tax rate.

The rate that you pay on the last (highest) dollar of personal or household (if married) earnings. As a result of the May 2003 tax law, there are currently six federal marginal tax rates: 10%, 15%, 25%, 28%, 33%, and 35%.

The tax rate applicable to the last unit of a person's income.

Tax that would be paid in addition to regular income tax if a taxpayer earned one more dollar. Marginal tax is always higher than the average tax rate.

The income tax rate at which the last dollar of your income is taxed. Under federal law, you often pay a lower tax rate on your first dollar of taxable income than you do on your last dollar. The marginal rate is the highest rate at which your income is taxed.

The amount of tax imposed on an additional dollar of income. The marginal tax rate increases as income rises.

The highest rate in the sliding scale of income tax rates applied to your taxable income in a particular tax year. For example, if you earn more than $62,500 in a year, your marginal rate is 47%. If you earn more than $21,600 then your marginal tax rate is 30%.

The total tax payable on the last dollar of income. The overall tax rate, which measures the total tax payable as a percentage of total income, will be significantly lower.

The highest tax rate an individual pays, usually taken to mean less basic rate tax (23% in 1998/99).

The rate you pay on each additional dollar of income.

The current U.S. income tax system is based on this rate. The amount of tax imposed on an additional dollar of income is the way the U.S. tax system levies it's tax.

The combined federal, state, and local tax rate applied to the next additional dollar of income. For example, if your federal tax bracket is 28%, and your state tax rate is 5%, when you earn another dollar of income, it would be taxed at a 33% tax rate.

The tax rate charged on the taxpayers last dollar earned; in a progressive tax system the marginal tax rate is always greater than the average tax rate.

The income tax rate at which the last dollar of an individual's income is taxed. Under federal law, the individual pays a lower tax rate on his/her first dollar of income than on his/her last dollar. The marginal rate-the highest rate at which the individual's income is taxed-is used to calculate taxes due on investment income.

The stepped rate of tax that you pay on your ‘taxable' income.

Combined federal and state tax rates at which additional dollars of interest over a specified ceiling are taxed at a higher rate.

The tax rate that applies to an additional dollar of taxable income.

The top rate of income tax that is charged to individuals on their last dollar of earnings. The rate also indicates how much tax you would save on each dollar of income that does not need to be reported on your tax return. For example, if your marginal tax rate is 40%, and you contribute $1,000 to your RRSP, you will save $400 in tax.

The tax rate that would have to be paid on an additional dollar of income. Marginal tax rates affect individuals' incentives to work, save, and shelter income from tax.

The percentage of tax payable on a person’s top portion of income.

The rate of tax on the last dollar of taxable income.

The amount of tax paid on an additional dollar of income. As income rises, so does the tax rate.

The percentage of an additional dollar of income that is paid in tax.

It is a rate of tax based on the next dollar earned.

The tax rate payable on income. Please refer to the Australian Taxation Office for details of income ranges and tax payable for income that falls in these ranges (www.ato.gov.au).

The tax rate that would have to be paid on any additional dollars of taxable income earned.

The additional tax which someone pays on each £1 increase of their taxable income. In the UK the tax bands for 2005-2006 tax year are: 10 per cent on the first slice of taxable earnings. 22 per cent on next slice. 40 per cent on top slice.

The tax rate applied to a particular tax bracket (a designated range of taxable income).

the rate of tax payable on the top portion of your income. Currently 47% in Australia (plus Medicare)

This is the share of each extra dollar of income that will go to the IRS. It's not necessarily the same as the rate in your top tax bracket because in many cases rising income squeezes the value of tax breaks. This means the extra income is effectively taxed more harshly than advertised. Knowing your marginal rate tells you how much of each additional dollar you make will go to the IRS and how much you'll save for every dollar of deductions you claim.