Effective and marginal tax rates might not be familiar terms. However, they’re essential concepts to understand because they determine how much income you’ll have to fork over to the government every ...

Many taxpayers are confused about the difference between effective and marginal tax rates. The marginal tax rate is the rate of tax charged on a taxpayer's last dollar of income. The effective tax ...

A check mark. It indicates that the relevant content has been reviewed and verified by an expert This story has been reviewed by a professional to ensure you get the most accurate and useful ...

Ever wonder how much of your income you’re really paying in taxes? Understanding the difference between your marginal tax ...

Effective tax rate is your average tax rate as a percentage of total income. Marginal tax rate is the tax on your highest dollar earned, not your total income. Historically, top marginal rates have ...