NZTaxTools

Marginal Tax Rate

The rate applied to your last dollar of income — the highest bracket you're in.

Your marginal tax rate is the rate of tax that applies to the next dollar of income you earn — i.e., the rate of the highest tax bracket you fall into. In NZ's progressive system, different portions of your income are taxed at different rates. The marginal rate is important for understanding the tax impact of earning more income.