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 ...

Marginal vs. effective tax rates are two ways to express the percentage of your income that goes to tax. But they're each used for very different purposes.

Your marginal tax rate is the highest income tax rate you’ll pay on your income. Because the U.S. has a progressive tax system, different tiers of your income are taxed at different rates. The ...

When you file your taxes each year, figuring out how much tax you’ll owe or whether you can expect a hefty refund will be top of mind. For answers, it’s helpful to know your marginal and effective tax ...