The rate used to calculate the tax due on the next dollar of income is referred to as the

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The rate used to calculate the tax due on the next dollar of income is referred to as the marginal tax rate. This rate applies only to the portion of a taxpayer's income that falls within a certain tax bracket, and it increases as income rises. Knowing your marginal tax rate is important for tax planning and calculating the impact of any additional income or deductions.

The Rate Used to Calculate the Tax Due on the Next