Our taxable income was $100,290. and we paid total tax of $18,939. Our summary page indicates an effective tax rate of 10.31%. Is that correct?

cind328958 · ‎March 16, 2023

SteamTrain · ‎March 16, 2023

"Effective" rate is just a handwaving number based on Gross income....before any deductions.

____________*Answers are correct to the best of my knowledge when posted, but should not be considered to be legal or official tax advice.*

CatinaT1 · ‎March 16, 2023

Very likely, yes, that is correct.

Your “effective tax rate” is the average percentage of your taxable income that you owe in federal taxes. In order to calculate this rate, you simply divide your tax liability (what you owe) by your total taxable income.

The link below will help you understand the difference between your effective tax rate and your marginal tax rate.

Is It Possible to Lower My Effective Tax Rate? What Are My Options?

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Our taxable income was $100,290. and we paid total tax of $18,939. Our summary page indicates an effective tax rate of 10.31%. Is that correct?