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 ...

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.

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 ...

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 ...

The U.S. has a progressive income tax system -- which means that the more money you earn, the higher your marginal tax rate. The good news is that the tax brackets are changing for 2026 tax year, so ...