Marginal rate is a rate for a band of income. Your effective rate is what you actually pay as a percentage of your total income. So if you have a marginal rat

Marginal rate is a rate for a band of income. Your effective rate is what you actually pay as a percentage of your total income. So if you have a marginal rate of 50% but it only kicks in when you earn over a certain amount, you will be paying less than 50% overall (your effective rate).