Define: Tax Base

Business, Legal & Accounting Glossary

Definition: Tax Base



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Full Definition of Tax Base


A tax base is comprised of or refers to the assessed value of a set of assets, or the income stream generated by assets or investments. Stated another way, a pool of taxable assets or investments represent a tax base. All the houses in a town or city, and any other taxable real estate, collectively form that municipality’s property tax base. All the residents, businesses, and taxable assets in a state comprise the state’s tax base, as do all residents, businesses, and taxable assets of a nation. The tax base expands when the population of a municipality, state, or nation grows, or when new businesses start-up or existing businesses expand. When businesses shrink or close down, or people move away from a city, state, or nation, the tax base diminishes. In an effort to increase collected revenues, governing entities therefore often try to expand their tax base by offering a range of incentives to attract business and residents.


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Tax Base. PayrollHeaven.com. Payroll & Accounting Heaven Ltd. April 05, 2020 https://payrollheaven.com/define/tax-base/.
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Tax Base. PayrollHeaven.com. Payroll & Accounting Heaven Ltd. https://payrollheaven.com/define/tax-base/ (accessed: April 05, 2020).
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Tax Base. PayrollHeaven.com. Retrieved April 05, 2020, from PayrollHeaven.com website: https://payrollheaven.com/define/tax-base/

Definition Sources


Definitions for Tax Base 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: 5th February, 2020