All glossary terms
Glossary term
Marginal Tax Rate
The tax rate applied to the next dollar of taxable income.
Related terms
1
Jurisdictions
us
Definition
Marginal rates apply progressively under Section 1, so different layers of income are taxed at different rates. A taxpayer's marginal rate is the rate on the top bracket their income reaches, while their effective rate is the average rate paid overall.
Examples
- A single filer with $100,000 taxable income in 2024 has a 24 percent marginal rate but a lower effective rate.
Related terms
Translations
EStasa marginal de impuesto
ZH边际税率
DEGrenzsteuersatz
FRtaux marginal d'imposition
JA限界税率
Citations
26 U.S.C. · 1
Related citations
Computed from the cross-reference graph. Links open the related entity on this site.
This entry cites
- TermEffective Tax Rate
- StatuteIRC §1
Cited by
- TermEffective Tax Rate
- TermKiddie Tax
Primary sources
- IRS tax bracket overviewVerified 2026-05-20
Important disclaimer
This library is for general tax education only. Always verify filing obligations, due dates, and tax consequences against the cited primary source or with a qualified tax professional.