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Marginal rate


in progressive tax, the increasing tax rate paid on income as it rises; tax rates levied on different levels of income


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  • Marginal tax rate

    The rate at which income over a certain amount is taxed. Although in general, graduated income taxes impose higher tax rates on higher incomes, the tax rate does not rise for each additional dollar earned. Rather, it rises by income brackets, and each tax rate applies only to income that falls in that bracket. For […]

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