All glossary terms
Glossary term
Effective Tax Rate
Total tax divided by total income, representing the average rate of tax paid.
Related terms
1
Jurisdictions
us
Definition
Effective tax rate provides a more accurate picture of overall tax burden than marginal rate. It can be computed as total federal income tax divided by AGI or by taxable income depending on the analytical purpose.
Examples
- A taxpayer with $100,000 income and $15,000 of federal income tax has a 15 percent effective rate.
Related terms
Translations
EStasa efectiva de impuesto
ZH实际税率
DEeffektiver Steuersatz
FRtaux d'imposition effectif
JA実効税率
Citations
Related citations
Computed from the cross-reference graph. Links open the related entity on this site.
This entry cites
Cited by
Primary sources
- Tax Foundation: effective tax rateVerified 2026-05-20
Important disclaimer
This library is for general tax education only. Always verify filing obligations, due dates, and tax consequences against the cited primary source or with a qualified tax professional.