tax rate (redirected from Statutory tax rate)

Tax Rate

1) The rate at which a business or person is taxed on income. Essentially the percent of income that goes towards taxes.

2) The rate of tax on good and services.

Notes:

1) For example, consider an individual with an income-tax rate of 30%. For every $100,000 that individual makes, $30,000 ($100,000 x 0.30) must be paid as tax.

There are three main types of tax rates: progressive, proportional and regressive.

2) For example, (as of 2005) in New York State the state tax rate is 4.25%. If you were to buy a $1000 television from a store, the total purchase price would be $1042.50, and the $42.50 in tax would go to the State of New York.

See also: Income Tax, IRS, Progressive Tax, Proportional Tax, Regressive Tax, Sales Tax

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Tax rate

The percentage of tax paid for different levels of income.

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tax rate

The proportional amount of taxes paid on a given income or the given dollar value of an asset. If the tax is calculated on the basis of total income, it is the average tax rate. If the tax is calculated only on extra units of income, the rate is the marginal tax rate.