Answer:
Average tax rate
Explanation:
The average tax rate is that tax rate at which the taxes amount is divided by the total income amount
In mathematically,
Average tax rate = (Amount of taxes ÷ total income amount) × 100
It is always be expressed in percentage.
Suppose the tax amount is $25,000 and the total income amount is $100,000
So, the average tax rate would be
= $25,000 ÷ $100,000 × 100
= 25%
