What’s the difference between effective and marginal tax rates?

Effective Tax Rate is your total tax divided by your taxable income. This is also the weighted average of each tax bracket up to the marginal tax rate (the highest tax bracket your last dollar of taxable income qualified for).
- For example, if your tax bill is $11,017 and your taxable income is $70,000, your effective tax rate would be 15.7% ($11,017 divided by $70,000)
A marginal tax rate is the percentage at which your last dollar of taxable income is taxed. This would be the highest percent from the tax bracket table.