Effective tax rate has many definitions but most just decide the tax by the total income before any deductions. Example $80,000 total income and $10,000 tax would be a 13% tax rate.
Others use the taxable income so if after deductions the taxable income is $55,000 then it would be 20%.
It is a rather meaningless figure that does not tell you much.
**Disclaimer: This post is for discussion purposes only and is NOT tax advice. The author takes no responsibility for the accuracy of any information in this post.**
