Misconception · MIS:effective-rate-equals-enacted-rate

Mistaken idea “The effective tax rate must equal the enacted statutory rate”

Mistaken reasoning: This mistake treats every deviation as an error.

Updated Aug 21, 2026 Review due Nov 8, 2026

Why this is mistaken

Permanent items, credits, jurisdictional rates, allowances, uncertainty, and enacted changes can create supported differences explained in the rate table.

Where to watch

When this mistake may appear

  • The statutory rate is known.
Check your work

Your work may contain this mistake if:

  • Force total tax expense to statutory-rate tax.