Definitions for "Effective tax rate"
Related Terms:
Marginal tax bracket, Marginal tax rate, After-tax, Average tax rate, Tax bracket, Tax rates, Progressive tax, Proportional tax, Taxable income, Flat tax, Regressive tax, Higher rate tax, Tax deduction, Income tax, Surtax, Tax rate, Tax preference items, Basic rate tax, Alternative minimum tax, Amt, Net effective income, Tax shield, Tax-exempt income, Deduction, Before-tax income, Agi, Rates, Exemptions, Kiddie tax, Tax credit, Itemized deduction, Adjusted gross income, Negative income tax, Itc, Bracket creep, Income taxes, Laffer curve, Estimated tax, Tax levy, Tax table, Tax liability, Gross interest, Tax deductions, Gross receipts tax, Tax exempt, Tax deductible, Yield equivalence, Tax-exempt, Deductions, Tax-deductible
The tax rate paid by a taxpayer. This is computed by dividing taxes paid for a given year by taxable income for that year.
Actual income tax paid divided by net taxable income before taxes, expressed as a percentage. see also tax bracket.
Tax divided by taxable income equals the tax effective rate. Tax is $30,000, taxable income is $120,000, and effective tax rate is 25%.
shows the actual income tax charges divided by net income before taxes.
Indicates the percentage of every dollar actually paid in taxes. It is calculated by adding together the state and federal income tax and dividing the result by total gross income.
Tax (adjusted for exceptionals) % profits before tax (adjusted for exceptionals)
Effective tax rate is calculated as taxation (excluding tax on exceptional items) divided by profit before tax, before goodwill amortisation and exceptional items.
Tax outgo expressed as percentage of profit before tax.
Tax rate expressed as a percentage of Market Value, usually equal to the Nominal (actual) tax rate if the assessment ratio is near 1.00.
The ratio of taxes paid to a given tax base. For individual income taxes, the effective tax rate is typically expressed as the ratio of taxes to adjusted gross income. For corporate income taxes, it is the ratio of taxes to book profits. For some purposes--such as calculating an overall tax rate on all income sources--an effective tax rate is computed on a base that includes the untaxed portion of Social Security benefits, interest on tax-exempt bonds, and similar items. The effective tax rate is a useful measure because the tax code's various exemptions, credits, deductions, and tax rates make actual ratios of taxes to income very different from statutory tax rates. See adjusted gross income and book profits.
The tax rate expressed as a percentage of market value. It will be different from nominal tax rate when the assessment level is not equal to one.
The average rate of tax that a taxpayer is paying on taxable income, calculated by dividing the total taxes payable by the taxable income. The terms "average tax rate" and "effective tax rate" are synonymous.
A tax rate, paid to the government after tax adjustments are made (for instance, interests on loans are paid).
The tax rate or percentage paid by the company for total taxes. Shown in the notes section of the annual report.
Provision for income taxes as a percentage of earnings before income taxes and accounting changes. Does not represent cash paid for income taxes in the current accounting period.
Tax paid divided by pre-tax profit. This indicates the relevant tax paid compared to the corporate tax rate of 34%.
current and deferred taxation as a percentage of profit on ordinary activities before taxation
is 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.
The proportion of taxation expense attributable to profit after allowing for permanent and timing differences.
The tax charge as a percentage of profit before tax.
A tax rate that reflects the percentage of the actual tax liability to the accounting income generated by the company, that is, net tax liability/financial (book) income before taxes.
is the ratio, generally expressed in percentages, of taxes paid to a taxpayer’s total income.
Total income taxes expressed as a percentage of NET INCOME before taxes.
The flat percentage rate equivalent of a given tax payer's progressive rate. For example, if your taxable income is $55,000 in 1993, the first $22,100 would be taxed at 15%. the next $31,400 at 28%, and the last $1,500 at 31%. The effective rate is approximately 24% applied to the entire $55,000.
The income tax you paid divided by your gross income earned over the same period. It differs from your income tax rate because it is an average taken over several years. It is also called your average income tax rate.
The effective tax rate is the amount of tax an individual or firm pays when all other government tax offsets or payments are included, divided by the individual or firm's total income or taxable income. This ratio is usually expressed as a percentage. If certain groups have high degrees of tax offsets compared to other groups their effective tax rate will be lower, even where their official tax rates and marginal tax rates will be equal.