Your marginal rate is what you pay on the last dollar. Your effective rate is what you actually pay overall. Know the difference.
TurboTax Self-Employed finds deductions specific to your industry automatically.
Try TurboTax Self-Employed →Effective rate = total taxes paid ÷ total income. This is your true tax burden.
Marginal rate = the tax rate on your next dollar of income (your "tax bracket"). The US has a progressive system — you only pay the high rate on income above each threshold.
Example: A freelancer earning $100k single might be in the 22% bracket, but their effective rate is closer to 18-20% because lower income is taxed at 10% and 12%.
SDE-based valuation for agencies & consultancies
NRR & GRR from expansion, contraction & churn
True cost difference for employers
Monthly savings needed for college