The net rate a taxpayer pays on income that includes all forms of taxes. It is calculated by dividing the total tax paid by taxable income.
Effective Tax Rate:
A tax rate that reflects the percentage of the actual tax liability to the accounting income generat
The gross underwriting spread adjusted for the impact that a common stock offering's announcement ha
- Total income taxes expressed as a percentage of NET INCOME before taxes.
Effective tax rate is the average percentage that companies and individuals pay in taxes on their taxable income. It?s typically calculated by dividing total taxes paid by the total taxable income. In other words, this is the rate that you are actually paying on your total income, not your marginal or bracket rate.