Reported 3 days ago
The marginal tax rate is the highest income tax rate applicable to your last dollar earned within a progressive tax system. As your income increases, portions of it are taxed at different rates, and only part is taxed at the highest rate, leading to a lower effective tax rate than your marginal rate. To find your marginal tax rate, determine your taxable income and consult relevant tax brackets. Tax deductions and contributions to tax-advantaged accounts can help reduce your taxable income, thereby lowering your marginal tax rate.
Source: YAHOO