Marginal Tax Rate

The tax rate paid on the next dollar you earn, in contrast to your average tax rate. Tax goes up in steps, or brackets, with the marginal tax rate only applying to income you earn within that bracket.
Aotearoa has progressive tax brackets, so higher income is taxed at higher marginal rates.
Example
If your marginal rate is 33%, that doesn’t mean all your income is taxed at 33% — only the portion above the bracket threshold for that rate.
Visual idea: A staircase showing higher rates only on higher steps.