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Glossary

Marginal Tax Rate

The tax rate applied to your last dollar of income.

Your marginal tax rate is the rate charged on your highest bracket of income. In a progressive system, only the income within each bracket is taxed at that bracket's rate.

A raise is taxed at your marginal rate only on the portion above the bracket threshold — never your whole income.

Put it into practiceTry the Income Tax Calculator (US 2025)Run your own numbers in seconds — free and private.

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