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Effective Tax Rate

The effective tax rate is simply a way of representing the actual rate that an individual pays in income taxes.  The effective tax rate is determined by dividing the taxpayer's tax liability by the individual's pre-tax income or gross income.

Tax Liability / Gross Income = Effective Tax Rate

A truck driver's tax liability is based on his or her tax bracket and taxable income.  These are related to several factors including:

In other words, determining a trucker's effective tax rate cannot be accomplished until their entire tax return is completed and the tax liability is determined.  But, the effective tax rate will never be higher than the truck driver's tax bracket.


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