Average Tax Rate

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Definition: Average Tax Rate

Average Tax Rate
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Full Definition of Average Tax Rate

The total amount of taxes paid by an individual or business divided by taxable income. This rate will vary based on the amount of income received during the taxable period. For example, if Steve paid $3,000 in taxes on income of $25,000, his average tax rate would be 12%. Formula: Paid taxes/taxable income = average tax rate.

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https://payrollheaven.com/define/average-tax-rate/
Modern Language Association (MLA):
Average Tax Rate. PayrollHeaven.com. Payroll & Accounting Heaven Ltd.
April 23, 2024 https://payrollheaven.com/define/average-tax-rate/.
Chicago Manual of Style (CMS):
Average Tax Rate. PayrollHeaven.com. Payroll & Accounting Heaven Ltd.
https://payrollheaven.com/define/average-tax-rate/ (accessed: April 23, 2024).
American Psychological Association (APA):
Average Tax Rate. PayrollHeaven.com. Retrieved April 23, 2024
, from PayrollHeaven.com website: https://payrollheaven.com/define/average-tax-rate/

Definition Sources

Definitions for Average Tax Rate are sourced/syndicated and enhanced from:

  • A Dictionary of Economics (Oxford Quick Reference)
  • Oxford Dictionary Of Accounting
  • Oxford Dictionary Of Business & Management

This glossary post was last updated: 20th November, 2021 | 0 Views.