While marginal tax rate refers to your highest tax bracket, effective tax rate is the actual percentage of your income that is taxed. This is sometimes referred to as your average tax rate.

Knowing your effective tax rate can help you understand how well you’ve been managing your tax situation throughout the year. Your effective tax rate is different from your tax bracket.

During last week’s hearing of the Senate Finance Committee, the Joint Committee on Taxation (JCT) reported that the effective tax rate for the nation’s highest-income taxpayers was 34 percent ...

and so the effective corporate tax rate, the rate a corporation actually pays, is usually lower than the statutory rate; the stated rate before any deductions. Corporate taxes are collected by the ...