The result is an effective rate of tax usually under 5%.
For companies, the important figure is the effective tax rate.
In the example above, the effective tax rate would be 10%.
For Class 4 property the effective rate is 4.74 percent.
At $150,000, the couple's effective tax rate is 33 percent.
But not for very far, or at any effective rate of speed.
The effective rate is the tax bill divided by the value of the house.
By 1994, the effective rate had declined to 32 percent.
So the effective tax rate, as a percent of the cash that is coming in, would be higher.
The effective rate on their incomes was thus cut more than 20 percent.