TAX RATE Meaning and
Definition
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Tax rate refers to the percentage of an individual or business entity's income or assets that is payable as a tax to the government. It represents the amount of tax imposed by the government on individuals or businesses' earnings, profits, or assets within a specific jurisdiction and time period.
The tax rate is typically determined by the legislative body or authority responsible for imposing taxes, such as the government or local taxation agencies. This rate can vary depending on the type of tax being applied, such as income tax, corporate tax, sales tax, property tax, or capital gains tax.
The tax rate is usually expressed as a percentage and is applied to the tax base, which is the amount that is subject to taxation. For instance, if an individual's income tax rate is 20% and their taxable income is $50,000, they would be required to pay $10,000 in income tax.
Tax rates can vary widely among different countries or jurisdictions, and they often undergo changes due to governmental policies or economic factors. Governments may raise or lower tax rates in order to generate revenue for public services or to stimulate economic growth. Additionally, tax rates may differ based on income brackets, where individuals or businesses with higher incomes are subject to higher tax rates.
Common Misspellings for TAX RATE
- rax rate
- fax rate
- gax rate
- yax rate
- 6ax rate
- 5ax rate
- tzx rate
- tsx rate
- twx rate
- tqx rate
- taz rate
- tac rate
- tad rate
- tas rate
- tax eate
- tax date
- tax fate
- tax tate
- tax 5ate
Etymology of TAX RATE
The word "tax" can be traced back to Middle English "taxen", which derived from the Old French "taxer" meaning "impose a tax". This can be further traced to Medieval Latin "taxare" meaning "to tax" or "charge". The term "rate" originates from the Old French "rat" or "rater", which meant "to fix a price" or "to appraise". Ultimately, "tax rate" is a combination of these two words, referring to the percentage at which a tax is imposed or assessed.
Similar spelling words for TAX RATE
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