Marginal vs. effective tax rate: How they differ and how to calculate each rate
Knowing the difference between your marginal and effective tax rate can help you manage your money better.
4 min read
Jan 23, 2025
Andrea Coombes, CFP®
Editor, Tax
EDUCATION
- University of California at Berkeley/B.A. in Sociology
- University of California at Berkeley/Master’s in Journalism
Andrea Coombes, a tax editor at Bankrate, loves to translate complex personal finance topics into understandable content that helps people live their best financial lives. She’s a Certified Financial Planner™ and over the past 20 years has worked as a financial coach, personal finance writer and editor and volunteer tax preparer.
Her work has been published in the Wall Street Journal, USA Today, Yahoo Finance, San Francisco Chronicle, Miami Herald and more.
Andrea's latest articles
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W-4 form: How to fill it out in 2024-2025
The steps you need to follow to fill out your W-4 form. The W-4 determines how much in taxes is withheld from your paychecks.
6 min read Nov 13, 2024 -
Sales tax deduction: How it works, who is eligible and how to claim it
Here’s how the sales tax deduction works, what purchases are eligible and how to claim it.
5 min read Nov 11, 2024 -
Estimated taxes: What you need to pay and when
If you earn income that isn’t subject to federal tax withholding, you probably need to pay estimated taxes.
4 min read Nov 08, 2024 -
Lower taxes, higher tariffs: What Trump’s tax plans mean for you
Trump’s tax and tariff plans could mean lower taxes for some Americans and higher costs for others.
3 min read Nov 07, 2024 -
Donation value guide for 2024
This list of common items offers an idea of what your donated clothing and household goods are worth, as suggested in the Salvation Army’s valuation guide.
3 min read Nov 04, 2024 -
What is net income? Definition and how to calculate it
Net income provides a more accurate account of financial status than gross income. Here’s why.
2 min read Nov 04, 2024 -
Tax hikes or tax cuts? Here’s how Harris and Trump compare on taxes
If Congress does nothing next year, taxes could increase for millions of Americans.
7 min read Oct 30, 2024 -
2024 gift tax rate: What it is, how it works and who has to pay it
The gift tax imposes a tax on large gifts, preventing large transfers of wealth without any tax implications.
4 min read Oct 29, 2024