1.0Glossaryhttps://www.healthbenefitstimes.com/glossaryGlossaryhttps://www.healthbenefitstimes.com/glossary/author/adminglossary/rich600338<blockquote class="wp-embedded-content" data-secret="KbQ1TYq9Va"><a href="https://www.healthbenefitstimes.com/glossary/marginal-tax-rate/">Marginal tax rate</a></blockquote><iframe sandbox="allow-scripts" security="restricted" src="https://www.healthbenefitstimes.com/glossary/marginal-tax-rate/embed/#?secret=KbQ1TYq9Va" width="600" height="338" title="“Marginal tax rate” — Glossary" data-secret="KbQ1TYq9Va" frameborder="0" marginwidth="0" marginheight="0" scrolling="no" class="wp-embedded-content"></iframe><script> /*! This file is auto-generated */ !function(d,l){"use strict";l.querySelector&&d.addEventListener&&"undefined"!=typeof URL&&(d.wp=d.wp||{},d.wp.receiveEmbedMessage||(d.wp.receiveEmbedMessage=function(e){var t=e.data;if((t||t.secret||t.message||t.value)&&!/[^a-zA-Z0-9]/.test(t.secret)){for(var s,r,n,a=l.querySelectorAll('iframe[data-secret="'+t.secret+'"]'),o=l.querySelectorAll('blockquote[data-secret="'+t.secret+'"]'),c=new RegExp("^https?:$","i"),i=0;i<o.length;i++)o[i].style.display="none";for(i=0;i<a.length;i++)s=a[i],e.source===s.contentWindow&&(s.removeAttribute("style"),"height"===t.message?(1e3<(r=parseInt(t.value,10))?r=1e3:~~r<200&&(r=200),s.height=r):"link"===t.message&&(r=new URL(s.getAttribute("src")),n=new URL(t.value),c.test(n.protocol))&&n.host===r.host&&l.activeElement===s&&(d.top.location.href=t.value))}},d.addEventListener("message",d.wp.receiveEmbedMessage,!1),l.addEventListener("DOMContentLoaded",function(){for(var e,t,s=l.querySelectorAll("iframe.wp-embedded-content"),r=0;r<s.length;r++)(t=(e=s[r]).getAttribute("data-secret"))||(t=Math.random().toString(36).substring(2,12),e.src+="#?secret="+t,e.setAttribute("data-secret",t)),e.contentWindow.postMessage({message:"ready",secret:t},"*")},!1)))}(window,document); //# sourceURL=https://www.healthbenefitstimes.com/glossary/wp-includes/js/wp-embed.min.js </script> The tax rate, or percentage, which is applied on the last increment of income for purposes of computing Federal or other income taxes. For example, in 1974 a single individual with an adjusted gross income of $3,000 would pay Federal income tax of $310 plus 19% of the excess over $2,000 (19% being the marginal tax rate). An individual with an income of $16,500 would pay $3,S30 plus 34% of the excess over $16,000 (34% being the marginal tax rate). In addition to income, the applicable marginal tax rate on a specific level of adjusted gross income may vary with a taxpayer's filing status. For example, on an adjusted gross income of $12,000-$14,000 in 1974 a single taxpayer would pav $2,630 plus 29% of the excess over $12,000; married taxpayers filing joint returns would pay $2,260 plus 25% of the excess over $12,000; married taxpayers filing separate returns would pay $2,830 plus 36% of the excess over $12,000; and unmarried heads of households would pay $2,440 plus 27% of the excess over $12,000. The marginal tax rate increases with income for progressive taxes and decreases for regressive taxes. The marginal tax rate is often referred to as an individual's tax bracket.