# Effective Tax Rate

Effective tax rate, abbreviated as ETR, is the tax you actually pay versus the income you earn.

## Corporation effective tax rate Formula |

\(\large{ ETR = \frac{ T }{ EBT } }\) |

Symbol |

\(\large{ ETR }\) = effective tax rate |

\(\large{ EBT }\) = earnings before taxes |

\(\large{ T }\) = total tax |

## Individual effective tax rate Formula |

\(\large{ ETR = \frac{ T }{ TI } }\) |

Symbol |

\(\large{ ETR }\) = effective tax rate |

\(\large{ TI }\) = taxable income |

\(\large{ T }\) = total tax |