Marginal tax rate

The tax rate on your next dollar of income, not the average rate on all income.

Your is the rate that applies to the last dollar you earn in a bracket. U.S. federal income tax is progressive, so higher income layers face higher rates.

vests can push you into a higher bracket for the year. That is why flat supplemental may not match what you ultimately owe.

is a planning concept. Your actual tax depends on total income, deductions, credits, and state rules, not one simple percentage.

Related terms

Educational definition only. Your grant documents, employer payroll, and tax forms control your situation.