If your taxable income rises from $35,000 to $45,000,and the taxes you pay rise from $12,000 to $15,000,your marginal tax rate is

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The marginal tax rate is calculated as the change in taxes paid divided by the change in taxable income. Here, the change in taxes is $3,000 ($15,000 - $12,000) and the change in income is $10,000 ($45,000 - $35,000). Thus, the marginal tax rate is $3,000 / $10,000 = 0.30 or 30 percent.

If Your Taxable Income Rises from $35,000 to $45,000,and the Taxes