What is the difference between my marginal tax rate and my effective tax rate?

Your marginal rate is the rate on your next dollar of income — the top bracket you reach. Your effective rate is the total federal tax you actually pay divided by your total income, which is always lower because the early dollars are taxed in lower brackets. Say you're single with $90,000 of taxable income in 2025: your top bracket is 22%, but because the first chunks are taxed at 10% and 12%, your effective rate works out closer to 14–15%. The distinction matters because deductions and pre-tax contributions save you at the marginal rate (the high one), while the effective rate tells you your real overall burden. When someone says "I'm in the 24% bracket," they mean marginal. Run your own numbers at wealthserene.com/tools/tax-strategies to see both.