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effective tax rate Finance Definition
The income tax rate that is actually paid by a taxpayer. To calculate it, divide the amount of tax paid by taxable income for the year. The percentage is the effective tax rate. Although a person may be in a 31 percent tax bracket, by the time deductions and credits are taken, the person’s effective tax rate may be less than 31 percent.

Browse dictionary entries near effective tax rate

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  2. ‹ effective date
  3. ‹ effective assistance of counsel
  4. ‹ effective
  5. ‹ effect
  6. ‹ efface
  7. ‹ EFF
  8. ‹ ef-
  9. ‹ EF
  10. ‹ eerie
  1. effectively ›
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  4. effectual ›
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  7. effeminacy ›
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