Marginal Tax Rate
Your marginal tax rate is the tax on your next (or last) dollar of taxable income.
- rate increases as tax income increases (called a progressive tax system)
- applies to investment income
For higher tax rates, investments with lower tax rates give higher after-tax returns.
Marginal Tax Rate | Consider |
---|---|
higher | capital gains |
lower | interest income |
page revision: 1, last edited: 08 Jul 2007 19:11