Effective Tax Rate


Definition of "Effective tax rate"

Equals the tax divided by taxable income. Foe example, if the tax is $30,000 on taxable income of $120,000 the effective tax rate if the business is 25% ($30,000/$120,000)



Search Real Estate Glossary

 

Related Real Estate Glossary terms

Estate Shrinkage

Decline in an estate's value, when the estate owner dies, because of death-related expenses to inclu ...

Valuable Papers (records) Insurance

Coverage in the event that papers of intrinsic value are damaged or destroyed. Coverage is on an all ...

Power Of Sale

provision in a mortgage agreement granting the lender the right to sell the foreclosed property of t ...

Duct

Pipe or conduit for electrical wiring. Enclosed conduit made of metal or other appropriate mate ...

Universal Life Insurance

Adjustable life insurance under which (1) premiums are flexible, not fixed; (2) protection is adjust ...

Release

to free real estate when the mortgage is paid. When a mortgage is paid in full, a release of reco ...

Related Real Estate FAQ

What If They No Longer Make My Specific Computer?

The insurance company will replace it with a model as close to it as possible in the current retail ...

What Is A Proration?

A proration is the division of certain fees. If the sellers have paid the taxes six months in advanc ...

What Is Depreciation?

Depreciation is a decline in the value of property due to general wear and tear, or is also known as ...

What Is A Mortgage Insurance Premium (MIP)?

A mortgage insurance premium is a policy that insures the lender against loss if the homeowner defau ...

What Is Earnest Money?

Earnest money is a deposit you make when you make an offer on a house. ...

What Is A Multiple Listing Service (MLS)?

A multiple listing service is a computerized listing of the homes for sale in an area listed with a ...

Read why Real Estate Agent rates 5 Stars in 10 Agent Reviews
Read Reviews

Agents join here
Add our widget on your Website

Real Estate Advice

Rent or Buy - the pros and cons 5 U.S. Cities with the Best Public Transportation 3 tips to ensure your sale goes through 7 Tips for a First Time Homebuyer What is Earnest Money

FAQ

What are my coverage options? What do I need to know about Homeowners Insurance? What is Loan Amortization? What do I need to know about Whole Life Insurance? What is a treasury index?