The rate on your next dollar of income — your top bracket.
Brackets are marginal: crossing into the 24% bracket taxes only the dollars above the line at 24%, not everything. A raise never lowers take-home pay.
Example: A single filer at $103,400 taxable income in 2025 has a 24% marginal rate.
FAQ
What is Marginal Tax Rate in simple terms?
Brackets are marginal: crossing into the 24% bracket taxes only the dollars above the line at 24%, not everything. A raise never lowers take-home pay.