What is the difference between Average Tax Rate and Marginal Tax Rate?

Taxes are a really horrible thing that people must pay. Almost every country, if not all, must pay some sort of taxes. Sometimes, taxes cause you to lose money from your income. Other times, the taxes are added to things that you buy in the stores or online.

The main difference between the average tax rate and the marginal tax rate seems to have to do with the taxes that affect the household. A smaller amount seems to be used when calculating the marginal tax rate. The average tax rate is the taxes that are paid for the person’s whole income. However, the marginal tax rates are measures through the earnings from one period of time. Marginal rates do affect the household.