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Revision as of 18:44, 27 August 2024

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Marginal tax rate is the rate of tax obtain a on your last (or highest) amount income. In the earlier described example, the person is being taxed with a marginal tax rate of 25% with taxable income of $45,000. Could mean they are paying 25% federal tax on her last dollars of income (more than $33,950).

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