Marginal Tax Rates

Discussions center on correcting misconceptions about progressive tax brackets, emphasizing that marginal rates apply only to income exceeding specific thresholds rather than the entire income.

📉 Falling 0.3x Finance & Crypto
4,211
Comments
19
Years Active
5
Top Authors
#7600
Topic ID

Activity Over Time

2008
25
2009
56
2010
126
2011
97
2012
126
2013
209
2014
104
2015
156
2016
266
2017
419
2018
279
2019
335
2020
395
2021
472
2022
337
2023
350
2024
236
2025
206
2026
17

Keywords

e.g TAXES US ETA HN HIGHER OMG UK USA i.e tax income rate marginal bracket tax rate taxes 50 taxed taxable

Sample Comments

diziet Oct 18, 2013 View on HN

You forget to take into account the tax bracket!

sethg Jan 5, 2011 View on HN

All the fuss over OMG HIGHER TAXES for people making over $250K/year neglects one important detail: these tax brackets are marginal tax rates, not absolute ones. Even if the rates for people making $250K and up had reverted to Clinton-era levels, someone making $251K of taxable income would be charged almost exactly the same absolute tax rate, all other factors being equal, as someone making $249K.(ETA: If you look at the table, the hypothetical family’s combined Federal

robflynn Jan 24, 2012 View on HN

Don't forget about income taxes, that'll skew that more toward the 50% mark .

Zklozenblarg Apr 2, 2013 View on HN

You should reexamine your payslip. The highest tax bracket may be roughly 50%, but none of your income is actually in that bracket. You probably get to keep about 65% of your income, which is still less than you would get to keep in California.

zdgsg Oct 31, 2018 View on HN

Almost but not quite - at high ends of salary the marginal tax rate is 38%, so $50k->$100k doesn't necessarily make you richer, it just makes Uncle Sam happier.

lostmsu May 13, 2021 View on HN

You don't seem to understand how the progressive taxation works. In U.S. you pay 0 tax on first ~20k income, 15% on the next 35k, 22% on next 40k and so on (random numbers). The 22% is what you pay on anything above 55k in this example. But for the first 55k you pay only 20k * 0% + 35k * 15%=5250, e.g. 9.5%

kyawzazaw Sep 15, 2020 View on HN

Taxes are calculated on the bracket though. So not the whole amount.

yunohn Jul 21, 2021 View on HN

Could you source the average tax rate number? That’s only the base tax rate for all income above ~20k.

seydor Oct 29, 2023 View on HN

you 're probably applying the highest tax bracket to the whole amount, but that's not how it works

exe34 Jul 2, 2025 View on HN

It's only 45% on money above 60k, it's not the entire paycheck.