Effective tax rate
In accounting, effective tax rate means total income tax expense divided by pre-tax income, reconciled to the statutory rate in the notes — by category and jurisdiction under ASU 2023-09.
- Layer
- Lexicon
- Defined in
- Lexicon
- Also called
- ETR
- Nearby
- 4
Authority
This definition follows ASC 740-10-50-12; ASU 2023-09.
Every citation in this system, with the text we read and the date we checked it, is in US GAAP and where these rules come from.
What it is not called
Each of these is a real word for a different thing. Using it here is what makes a product read as though it was built by someone who has not done the work.
- statutory rate
- marginal rate
Nearby in the catalog
No component names this concept outright. These are the ones in its part of the system, which is a weaker claim — but a component nothing links to is a component nobody finds.
Terms this one depends on
- Income tax expenseThe P&L charge for income taxes — current tax payable for the period plus the change in deferred tax assets and liabilities
- ReconciledMatched to a bank statement line
- ExpenseOutflows or using up of assets, or incurrences of liabilities, from delivering goods or services — recognized when incurred, not when paid
Also in Tax
Defined in Lexicon. This page is generated from that document, so the two cannot disagree.