The additional rate is a higher marginal rate of income tax applied to income that exceeds a specified threshold, typically aimed at higher earners.
Tax liability for children under age 14 on net unearned income (e.g., interest and dividend income) over $1,900 in 2010 (subject to indexing) is taxed at their custodial parents' highest marginal tax rate.
The marginal tax rate is the tax rate applied to an additional dollar of income, influenced by the progressive nature of income tax systems.
A tax rate is the percentage at which an individual or corporation is taxed. Tax liability is calculated by applying the appropriate tax rate to the tax base.
A tax shield refers to allowable deductions that reduce a taxpayer's taxable income, thereby decreasing the amount of tax owed.
