Highest Marginal Tax Rate

Highest Marginal Tax Rate. : (i) the highest marginal rate of federal individual income tax; plus (ii) the highest marginal rates of state, local and/or foreign individual income taxes in the state and locality or foreign jurisdiction of the Employee's residence, net of the reduction in federal income taxes which could be obtained from any deduction or credit attributable to the state, local or foreign taxes; that are in effect for the calendar year in which the Gross-Up Payment is to be made.