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Glossary

Effective Tax Rate

Your total tax divided by your total income.

The effective tax rate is your overall average rate — total tax paid divided by total income. It's always lower than your marginal rate because lower brackets tax earlier income less.

It's the truest single measure of your tax burden.

Put it into practiceTry the Income Tax Calculator (US 2025)Run your own numbers in seconds — free and private.

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