What Is an Effective Tax Rate?
Your effective tax rate is the percentage of your overall taxable income that you pay in taxes. “Effective” is a tax way of saying “average,” and this rate is usually considerably less than your marginal tax rate, which is hinged to your highest tax bracket.
Original Article Source Credits: The Balance, https://www.thebalance.com/
Article Written By: Beverly Bird
Original Article Posted on: 6th January 2021
Link to Original Article: https://www.thebalance.com/how-to-calculate-your-effective-tax-rate-4685263