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:
“In the middle classes the gifted son of a family is always the poorest—usually a writer or artist with no sense for speculation—and in a family of peasants, where the average comfort is just over penury, the gifted son sinks also, and is soon a tramp on the roadside.”
—J.M. (John Millington)
“One cannot develop taste from what is of average quality but only from the very best.”
—Johann Wolfgang Von Goethe (1749–1832)
“The idea that leisure is of value in itself is only conditionally true.... The average man simply spends his leisure as a dog spends it. His recreations are all puerile, and the time supposed to benefit him really only stupefies him.”
—H.L. (Henry Lewis)