tax rate

Definition
The percent of income paid as tax, or the percent of the value of a good, service or asset paid as tax. This is different from the applicable marginal tax rate, which is the tax rate applicable on the last dollar. Tax rates can be classified as one of three types: progressive tax, proportional, or regressive. A progressive tax is one in which the percent paid as tax rises as the amount rises (for example, personal income tax in many countries). A proportional tax is one in which the percent paid as tax stays the same as the amount rises (for example, sales tax, or corporate income tax in some countries). A regressive tax is one in which the percent paid as tax falls as the amount rises (for example, value added tax in some cases). Thus, a person's applicable tax rate will depend on how much of each type of tax he/she pays as part of his/her total tax burden.




tax rate is ...
... part of the
Taxes subject.


Related Terms

break-even tax rate -  More
long-term gain or loss -  More
marginal rate -  More
offshore company, short-term gain or loss, supply-side economics, tax bracket, tax equivalent yield, Section 529 plan, NOPAT, economic policy, Tax Equity and Fiscal Responsibility Act of 1982, unlevered beta


tax rate appears in these other terms

effective tax rate


tax rate appears in the definitions of these other terms on BusinessDictionary.com

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