The marginal tax rate is

A) less than the average tax rate when a tax is progressive.
B) calculated by dividing total taxes paid by one's total taxable income.
C) the percentage of one's total income that is paid in taxes.
D) the percentage of an increment of income that is paid in taxes.

Marginal Tax Rate

The rate at which the last dollar of income is taxed, representing the tax rate applied to each additional dollar of income.

Average Tax Rate

The fraction of total income that is paid as taxes, calculated by dividing the total tax amount by the total income.

Progressive

Progressive, in an economic context, refers to a taxation or policy structure where the tax rate increases as the taxable base amount increases, often aimed at reducing income inequality.