If your income increases from $10,000 per year to $14,000 per year and your tax payment increases from $2,000 to $2,840, the marginal tax rate

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The marginal tax rate is the change in tax payment divided by the change in income. In this case, the change in tax payment is $2,840 - $2,000 = $840, and the change in income is $14,000 - $10,000 = $4,000. Therefore, the marginal tax rate is $840 / $4,000 = 0.21, or 21%.

If Your Income Increases from $10,000 Per Year to $14,000