What does the marginal tax rate represent?

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The rate of tax applied to each extra dollar of income you earn.The overall tax paid divided by your entire income.The extra tax paid relative to your total income.Your total earnings divided by the total tax amount paid.

Explanation

The marginal tax rate refers to the percentage of tax charged on any additional income you receive. It differs from the average tax rate, which is calculated by dividing total tax paid by total income.