What does marginal tax rate mean?

The so-called marginal tax rate is the proportion of tax in the increment of the amount of tax object. \x0d\ For example, for the estate tax, the marginal tax rate is the proportion of each additional tax of US$ 65,438+0 yuan in the estate, while for the enterprise income tax, the marginal tax rate is the proportion of the additional tax of US$ 65,438+0 yuan. \x0d\ Take excessive progressive personal income as an example. If the exemption amount is 800 yuan, the marginal tax rate of this part of income below 800 yuan is 0. When the income is 1 0,000 yuan, the incremental 200 yuan tax is 10 yuan, and the marginal tax rate is 10 yuan/200 yuan =5%. When the income is 1800, the increment is 1000 yuan, the tax rate is 10%, the tax rate is 100%, and the marginal tax rate is 10%. \x0d\ It can be seen that each tax rate in the individual income tax excess progressive tax rate table is actually the marginal tax rate corresponding to the income level. The ratio of taxable amount to taxable income is the average tax rate. Of course, not all the marginal tax rates of taxes increase with the increase of the marginal amount of tax objects.