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In a tax system, the **tax rate** describes the ratio (usually expressed as a percentage) at which a business or person is taxed. There are several methods used to present a tax rate: statutory, average, marginal, and effective. These rates can also be presented using different definitions applied to a tax base: inclusive and exclusive.

A **statutory tax rate** is the legally imposed rate. An income tax could have multiple statutory rates for different income levels, where a sales tax may have a flat statutory rate.

An **average tax rate** is the ratio of the total amount of taxes paid to the total tax base (taxable income or spending), expressed as a percentage.

In a proportional tax, the tax rate is fixed and the average tax rate equals this tax rate. In case of tax brackets, commonly used for progressive taxes, the average tax rate increases as taxable income increases through tax brackets, asymptoting to the top tax rate. For example, consider a system with three tax brackets, 10%, 20%, and 30%, where the 10% rate applies to income from $1 to $10,000, the 20% rate applies to income from $10,001 to $20,000, and the 30% rate applies to all income above $20,000. Under this system, someone earning $25,000 would pay $1,000 for the first $10,000 of income (10%); $2,000 for the second $10,000 of income (20%); and $1,500 for the last $5,000 of income (30%). In total, they would pay $4,500, or an 18% average tax rate.

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**Rate** may refer to:

This page contains text from Wikipedia, the Free Encyclopedia - https://wn.com/Rate

**Ratež** (pronounced [ˈɾaːtɛʃ]) is a settlement in the hills east of Novo Mesto in southeastern Slovenia. The area is part of the traditional region of Lower Carniola and is now included in the Southeast Slovenia Statistical Region.

This page contains text from Wikipedia, the Free Encyclopedia - https://wn.com/Ratež

In mathematics, a **rate** is the ratio between two related quantities Often it is a *rate of change*. If the unit or quantity in respect of which something is changing is not specified, usually the rate is *per unit of time*. However, a rate of change can be specified per unit of time, or per unit of length or mass or another quantity. The most common type of rate is "per unit of time", such as speed, heart rate and flux. Ratios that have a non-time denominator include exchange rates, literacy rates and electric field (in volts/meter).

In describing the units of a rate, the word "per" is used to separate the units of the two measurements used to calculate the rate (for example a heart rate is expressed "beats per minute"). A rate defined using two numbers of the same units (such as tax rates) or counts (such as literacy rate) will result in a dimensionless quantity, which can be expressed as a percentage (for example, the global literacy rate in 1998 was 80%) or fraction or as a multiple.

This page contains text from Wikipedia, the Free Encyclopedia - https://wn.com/Rate_(mathematics)

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