Jinsi ya kukokotoa Effective Tax Rate

Effective Tax Rate ni nini?

Effective tax rate is total tax paid divided by total income, showing the true percentage of income paid as tax. It differs from marginal rate which applies only to the next dollar earned.

Fomula

Mwongozo wa Hatua kwa Hatua

1. 1Calculate tax owed based on tax brackets and income
2. 2Divide total tax by total income
3. 3Result is the actual average percentage rate

Mifano Iliyotatuliwa

Makosa ya Kawaida ya Kuepuka

• ✕Confusing effective with marginal rate
• ✕Not accounting for all income sources