The actual rate at which a taxpayer pays taxes on income accounting for all taxes and offsets. The rate is calculated by dividing the total of all taxes paid, less offsets, by the total taxable income. The effective rate is typically lower than the tax bracket, which is currently based on a progressive rate scale. For example, a person in the 28% tax bracket who paid a total of state and federal taxes of $13,000 on $100,000 of taxable income has an effective tax rate of 13%.
Related information about effective income tax rate:
- How to Calculate Effective Income Tax Rates | eHow.com
Divide the amount of tax paid by the amount of taxable income you have to calculate your effective income tax rate, expressed as a decimal. For example, if you ...
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Sep 26, 2012 ... IRS data, though, shows that Romney's effective income tax rate -- that's what he pays as a percentage of his income once deductions and ...
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Definition of effective income tax rate: The actual rate at which a taxpayer pays taxes on income accounting for all taxes and offsets. The rate is calculated by ...
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Sep 22, 2012 ... As you can see, Romney pays a higher effective income tax rate — 14.1% vs. 9.1 % — than the average American. What's more, he pays a ...
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- Income tax in the United States - Wikipedia, the free encyclopedia
In the United States, a tax is imposed on income by the federal, most states, and many local governments. The income tax is determined by applying a tax rate, ...