The big topic of marginal tax rate is the topic of today.
As a beginner in the investing world i really struggled with this one but now after being involved in this world I learned what it is.
So basically your marginal tax rate is the tax rate you would pay on one more dollar of taxable income. This marginal tax rate equates to your tax bracket.
Let’s say that you are single with $30,000 of taxable income, it means that you would be in the 12% tax bracket.