Effective tax rate and marginal tax bracket might seem like complicated tax terms, but they’re simply two different ways to express how much you pay in taxes. The main difference between marginal and ...

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 ...

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 ...

Text Callout : Key Takeaways - How to Calculate Your Effective Tax Rate Your effective tax rate is a good indicator of how well you’ve been managing your tax situation. It’s smart to calculate your ...

It almost ALWAYS makes sense economically to make more money. Only if the tax rates were above 100% would it not make sense to earn more money.

Use our interactive tool to see why your top tax rate isn’t what you actually pay.

Karla Dennis, EA, MST, is CFO/CEO of the award-winning tax accounting firm KDA Inc.—specializing in tax planning. Taxes can feel overwhelming, especially when it comes to tax brackets. In this article ...