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.
Read more about this topic: Tax Rate
Famous quotes containing the word average:
“The average parent may, for example, plant an artist or fertilize a ballet dancer and end up with a certified public accountant. We cannot train children along chicken wire to make them grow in the right direction. Tying them to stakes is frowned upon, even in Massachusetts.”
—Ellen Goodman (b. 1941)
“All the average human being asks is something he can call a home; a family that is fed and warm; and now and then a little happiness; once in a long while an extravagance.”
—Mother Jones (1830–1930)
“A fairly bright boy is far more intelligent and far better company than the average adult.”
—J.B.S. (John Burdon Sanderson)