Tax Rate - Average

Average

An average tax rate is the ratio of the amount of taxes paid to the tax base (taxable income or spending).

To calculate the average tax rate on an income tax, divide total tax liability by taxable income:

Let be the average tax rate.
Let be the tax liability.
Let be the taxable income.

Famous quotes containing the word average:

“You preferred it to the usual thing:
One dull man, dulling and uxorious,
One average mind—with one thought less, each year.”
—Ezra Pound (1885–1972)

“It’s not that we want the political jobs themselves ... but they seem to be the only language the men understand. We don’t really want these $200 a year jobs. But the average man doesn’t understand working for a cause.”
—Jennie Carolyn Van Ness (b. c. 1890–?)

“May you be ordinary;
Have, like other women,
An average of talents....”
—Philip Larkin (1922–1986)