Marginal tax rate - The tax rate that would have to be paid on any additional dollars of taxable income earned.
The additional tax which someone pays on each Ј1 increase of his or her taxable income. In the UK the tax bands for 2003-2004 tax year are:10 per cent on the first slice of earnings22 per cent on next slice40 per cent on top sliceUnder the "progressive" tax system, once someone"s earnings take him into the top tax bracket, any extra earnings will be taxed at the top rate. So someone who is in the 40 per cent bracket has a marginal tax rate of 40 per cent.
Marginal tax rate : the tax rate that would have to be paid on any additional dollars of taxable income earned.
the additional tax which someone pays on each Ј1 increase of his or her taxable income. in the uk the tax bands for 2003-2004 tax year are:10 per cent on the first slice of earnings22 per cent on next slice40 per cent on top sliceunder the "progressive" tax system, once someone"s earnings take him into the top tax bracket, any extra earnings will be taxed at the top rate. so someone who is in the 40 per cent bracket has a marginal tax rate of 40 per cent.
Marginal tax rate