What Is a Markup

question 113

Essay

What is a markup?

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Definitions:

Average Tax Rate

The ratio of total taxes paid to total income, representing the overall percentage of income that is taken by taxes.

Marginal Tax Rate

The rate at which the last dollar of a taxpayer's income is taxed, indicating how much of any additional income will be taken in taxes.

Marginal Tax Rate

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

Additional Income

Earnings received beyond the regular pay or salary, such as bonuses or overtime pay.