What Is an Effective Tax Rate?

Author: External Author | | Categories: Accounting Firm , Accounting Solutions , Bookkeeping Firm , Bookkeeping Solutions

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.

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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

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