The marginal tax rate is calculated by dividing

A) taxes paid by taxable income.
B) taxable income by taxes paid.
C) additional taxes paid by additional taxable income.
D) additional taxable income by additional taxes paiD.

Marginal Tax Rate

It is the rate at which the last dollar of income is taxed, reflecting the percentage of tax applied to your income for each tax bracket in which you qualify.

Taxable Income

The amount of income subject to taxes, after all deductions and exemptions are taken into account.