It’s safe to say that many Americans are a bit fuzzy on how taxes work and how much they actually pay. A 2018 Gallup poll, for instance, found that 45% of respondents said they believe they pay too ...

Amanda Bellucco-Chatham is an editor, writer, and fact-checker with years of experience researching personal finance topics. Specialties include general financial planning, career development, lending ...

The nominal U.S. corporate tax rate is 35%, but relatively few companies pay the full amount. The portion of profits a company actually owes is known as its effective tax rate. There are a number of ...

Ever wonder how much of your income you’re really paying in taxes? Understanding the difference between your marginal tax rate vs. effective tax rate is key to making smarter financial decisions, from ...

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 ...

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 ...