Definition
Effective tax rate
The effective tax rate is the total tax you pay divided by your total income, expressed as a percentage. It is not the same as your marginal rate, which is the rate charged on the last unit of income you earn.
An effective rate is what a single-rate calculator needs, because it spreads the brackets, allowances and credits of a real tax system into one number. Your payslip gives you both figures over a full year.