What Is the Effective Tax Rate?
Definition
Effective Tax Rate: The total tax paid as a percent of the taxable income. Under a progressive tariff it is at most the marginal rate. Also called the average tax rate.
The effective tax rate is the total tax as a percent of the taxable income. It is also called the average tax rate (ortalama vergi oranı). It shows what share of the income goes to tax. Under a progressive tariff the lower brackets carry lower rates, so the effective rate stays at or below the marginal rate.
Where it appears in the formulas
effective tax rate = income tax / taxable income × 100. The income tax calculator gives it with every result, next to the marginal rate.
Not the effective annual rate
The effective annual rate of a loan or deposit is an interest rate that includes compounding; it has nothing to do with tax.
In Türkiye
The rate is computed on the progressive tariff of Income Tax Law no. 193, art. 103. The income tax calculator shows it next to the marginal rate for that tariff.