ETR
Business & Finance abbreviation · Tax
| Stands for | Effective tax rate |
|---|---|
| Categories | Business & Finance |
ETR stands for Effective tax rate, a tax abbreviation.
Total tax divided by income, showing the share of income actually paid in tax; for individuals it is usually far below the top marginal bracket because of progressive rates, deductions and credits. Analysts also compute it for companies using reported tax expense.
Example: My top bracket is 24%, but my ETR is only about 13% of gross income.
Usage notes
Different measures divide by taxable income, AGI or total economic income, so comparisons need a consistent definition. In corporate reporting, a gap between the statutory and effective rate often reflects foreign earnings, credits or stock-compensation deductions and is explained in the tax footnote.
Related abbreviations
More tax abbreviations
- CTC – Child Tax Credit
- DAF – Donor-advised fund
- EA – Enrolled Agent
- EFTPS – Electronic Federal Tax Payment System
- EIN – Employer Identification Number
- EITC – Earned Income Tax Credit
- FATCA – Foreign Account Tax Compliance Act
- FBAR – Report of Foreign Bank and Financial Accounts (FinCEN Form 114)
- FEIE – Foreign earned income exclusion
- FICA – Federal Insurance Contributions Act tax
- FIT – Federal income tax
- FTC – Foreign tax credit