what is a marginal tax rate 
the united states uses a progressive tax system meaning that it uses a marginal tax rate to determine taxes owed a marginal tax rate determines the tax paid on an additional dollar of income that takes a taxpayer into a higher tax bracket the marginal tax rate increases as a taxpayer s income increases there are different tax rates for various levels of income in other words taxpayers will pay the lowest tax rate on the first bracket or level of taxable income a higher rate on the next level and so on the internal revenue service irs announces any changes to tax brackets and rates annually for tax years 2023 and 2024 there are seven federal tax brackets each is assigned a different rate ranging from 10 to 37 and a range of taxable income per bracket the dollar ranges in each bracket vary for single filers married joint filers and qualifying widow er s married filing separately filers and head of household filers 51