Marginal tax rates are based on:

Name: Marginal tax rates are based on:
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Marginal tax rates are based on an additional dollar of income earned. As income increases, the taxpayer moves into a higher tax bracket and pays a higher marginal tax rate on that additional dollar of income. Net income and total income are not used to calculate marginal tax rates. Earnings before interest and taxes (EBIT) is a term used in business accounting and is not relevant to personal income tax.

Marginal Tax Rates Are Based On