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:
“But the whim we have of happiness is somewhat thus. By certain valuations, and averages, of our own striking, we come upon some sort of average terrestrial lot; this we fancy belongs to us by nature, and of indefeasible rights. It is simple payment of our wages, of our deserts; requires neither thanks nor complaint.... Foolish soul! What act of legislature was there that thou shouldst be happy? A little while ago thou hadst no right to be at all.”
—Thomas Carlyle (1795–1881)
“The average Hollywood film star’s ambition is to be admired by an American, courted by an Italian, married to an Englishman and have a French boyfriend.”
—Katharine Hepburn (b. 1909)
“He seems like an average type of man. He’s not, like smart. I’m not trying to rag on him or anything. But he has the same mentality I have—and I’m in the eighth grade.”
—Vanessa Martinez (b. c. 1978)