A taxpayer’s effective tax rate is usually lower than their marginal tax rate. In other words, someone in the 24% tax bracket typically doesn’t hand over 24% of their annual income to the IRS. Instead, their effective tax rate might be 18%, meaning they’re paying 18% of their taxa...
effective tax rate meaning, definition, what is effective tax rate: the average rate at which someone pays t...: Learn more.
Related to Effective Rate:Effective tax rate Another name for annual percentage rate that refers to the amount of yearly interest to be charged by a lender on the money borrowed by a debtor. In federalIncome Taxlaw, the actual tax rate that an individual taxpayer pays based upon his or her...
Effectivenext month, the landfill will no longer accept old televisions. 4 always used before a noun used to describe something that exists or has an effect but that is not officially stated or recognized theeffectivetax rate The army has takeneffectivecontrol of the city. ...
of a rate of interest : nominal effectivenessnoun More from Merriam-Webster oneffective Nglish:Translation ofeffectivefor Spanish Speakers Last Updated: 2 May 2025 - Updated example sentences Love words? Need even more definitions? Subscribe to America's largest dictionary and get thousands more defi...
Where the nominal rate is 9% but interest calculated semi-annually the effective rate is 9.2% Where the nominal rate is 8.5% but interest earned quarterly the effective rate is 8.77%. Thus, Todd should go with the 10% account. The above should alert business to carefully scrutinize investment...
What is the definition of effective interest rate?Based on the stated ornominal ratefor a given period, such as an annualinterest rate, the effective rate is calculated by incorporating the impact of compounding interest periods into the stated, nominal rate. The effective interest rate formula is...
the tax becomeseffectivenext year 3 :actual the need to increaseeffectivedemand for goods 4 :ready for service or action effectivemanpower 5 of a rate of interest : simple interest compound interest nominalsense 4 effectivenessnoun effectivity ...
The effective tax rate is the percent of income or pre-tax profits that an individual or a corporation pays in taxes.
The meaning differs depending on the area of use. In accounting, the effective interest rate method examines the relationship between an asset’s book value and related interest. In lending, the effective annual interest rate might refer to an interest calculation in which compounding occurs more ...