Tax Rate

1. The rate at which a business or person is taxed on income.

2. The rate of tax on good and services.

Investopedia Says:
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 buy a $1,000 television from a store, the total purchase price will be $1,042.50, with $42.50 in tax paid to the State of New York.

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Percentage of tax paid on a certain level of income. The U.S. Uses a system of marginal tax rates, meaning that the rates rise with taxable income. The top rate is paid only on the portion of income over the threshold. The federal government imposes six tax rates on individuals-10%, 15%, 25%, 28%, 33%, and 35%. It imposes six tax rates on corporations-15%, 25%, 34%, 35%, 38%, and 39%. See also Tax Bracket.

The ratio of a tax Assessment to the amount being taxed.
Example: In a certain community, the tax rate for Property Taxes is $3.50 per $100 of Assessed Value. A home is valued at $200,000. A Homestead Exemption of $5,000 is allowed for this type of property. The tax collected is

($200,000 - $5,000)

3.50 • ------------ = $6,825.00

$100

The amount of charges imposed by the government upon personal or corporate income, capital gains, gifts, estates, and sales that are within its statutory authority to regulate.

Tax rate schedules are utilized by taxpayers whose taxable incomes exceed certain designated amounts. Separate schedules are provided for married individuals who file jointly, unmarried people who maintain a household, single people, estates, trusts, and married couples who file separate returns.

See: income tax; taxation.