The _________________ income tax rate is the tax rate levied on your last dollar of taxable income.

Question

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The marginal income tax rate is the tax rate applied to the last dollar of taxable income earned. It is the highest tax rate an individual or business will pay on their income. Gross income is the total income earned before deductions, while adjusted income is gross income minus certain deductions. Estimated income tax is a calculation of how much tax will be owed based on the anticipated amount of income earned for the year. None of these options fits the description of the tax rate levied on the last dollar of taxable income.

The _________________ Income Tax Rate Is the Tax Rate Levied