Effective Tax Rate vs. Marginal Tax Bracket: What's the Difference?
May 29, 2016 at 09:23 AM EDT
Not sure what the difference between your marginal and effective tax rate is? We're here to help! Supreme Court Justice Oliver Wendell Holmes, Jr. once famously wrote, "Taxes are the price we pay for a civilized society." And while that's certainly true, it doesn't mean anyone should pay a penny more than they are required to.