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 ...

Troy Segal is an editor and writer. She has 20+ years of experience covering personal finance, wealth management, and business news. Amanda Bellucco-Chatham is an editor, writer, and fact-checker with ...

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.

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 ...

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 ...