Marginal tax rate

Marginal

A marginal tax rate is the marginal rate indicating what percentage of additional income at a certain income level would be paid in taxes. For example, if an individual earning $1,000,001 pays $0.37 more in taxes than the same individual would pay if they earned $1,000,000, then their marginal tax rate at $1,000,000 is 37% because they paid 37% of the additional $1 of earnings in taxes.