The effective tax rate is the average tax rate paid by an individual or a corporation. The effective tax rate for individuals is the average rate at which their earned income, such as wages, and unearned income, such as stock dividends, are taxed. The effective tax rate for a corporation is the average rate at which its pre-tax profits are taxed, while the statutory tax rate is the legal percentage established by law.
Click to rate this post!
[Total: 0 Average: 0]