effective tax rate

Definition

Accounting

• noun the average tax rate applicable to a given transaction, whether it is income from work undertaken, the sale of an asset, or a gift, taking into account personal allowances and scales of tax. It is the amount of money generated by the transaction divided by the additional tax payable because of it.

Nearby Definitions of “effective tax rate”

• Edmund Kean
• Edward Alleyn
• Edward Bond
• Edward (Franklin) Albee
• Edwin Forrest
• effective tax rate
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Contexts for “effective tax rate”

1 definition in context
• Accounting