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Marginal vs. effective tax rate: What they mean — and why both matter

Marginal tax rate is the rate you pay on your last dollar of income, based on your tax bracket. Effective tax rate is the average rate you pay on all of your income. Understanding the difference is ...
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The good news is most of us pay low effective tax rates on an extra day’s work, even including means tests and childcare

Australia’s top marginal tax rate is 47% (45% plus Medicare levy), but some of us face a so-called effective marginal tax rate that’s much higher. Effective rates include everything that is lost as a ...