10/26/2026
Word of the day: Marginal Tax Rate
Your marginal tax rate is the rate that applies your next dollar of income, not everything you earned that year. Income is taxed in layers, and each layer has its own rate. The marginal rate is simply the one sitting at the very top of your income.
It matters for planning because it tells you what any additional income or deduction is actually worth to you. Want to know more? Trust Accountants Cabin for expert tax planning in Loveland.