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Latest revision as of 13:53, 16 July 2026


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Marginal tax rate may be the rate of tax you pay on your last (or highest) amount of income. In the earlier described example, the individual is being taxed with a marginal tax rate of 25% with taxable income of $45,000. This may mean this person is paying 25% federal tax on her last dollars of income (more than $33,950).

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