Average Tax Rate Calculator

✖Tax Paid refers to the total amount of money remitted to the government by individuals or entities in fulfillment of their tax obligations.ⓘ Tax Paid [TP]			+10% -10%
✖Net income is a company's total earnings.ⓘ Net Income [NI]			+10% -10%

✖The Average Tax Rate is the ratio of total taxes paid to total taxable income, expressed as a percentage.ⓘ Average Tax Rate [ATR]

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Formula

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Average Tax Rate

Formula

`"ATR" = "TP"/"NI"`

Example

`"0.125"="250000"/"2000000"`

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Average Tax Rate Solution

STEP 0: Pre-Calculation Summary

Formula Used

Average Tax Rate = Tax Paid/Net Income
ATR = TP/NI
This formula uses 3 Variables

Variables Used

Average Tax Rate - The Average Tax Rate is the ratio of total taxes paid to total taxable income, expressed as a percentage.
Tax Paid - Tax Paid refers to the total amount of money remitted to the government by individuals or entities in fulfillment of their tax obligations.
Net Income - Net income is a company's total earnings.

STEP 1: Convert Input(s) to Base Unit

Tax Paid: 250000 --> No Conversion Required
Net Income: 2000000 --> No Conversion Required

STEP 2: Evaluate Formula

Substituting Input Values in Formula

ATR = TP/NI --> 250000/2000000

Evaluating ... ...

ATR = 0.125

STEP 3: Convert Result to Output's Unit

0.125 --> No Conversion Required

FINAL ANSWER

0.125 <-- Average Tax Rate

(Calculation completed in 00.004 seconds)

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Credits

Created by Kashish Arora

Satyawati College (DU), New Delhi

Kashish Arora has created this Calculator and 50+ more calculators!

Verified by Vishnu K

BMS College of Engineering (BMSCE), Bangalore

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< 18 Public Finance Calculators

Cost Benefit Analysis

Go Benefit Cost Ratio = (sum(x,0,Number of Periods,(Cash Flow of Benefits/(1+(0.01*Discount Rate))^x)))/(sum(x,0,Number of Periods,(Cash Flow of Costs/(1+(0.01*Discount Rate))^x)))

Marginal Propensity to Consume

Go Marginal Propensity to Consume = Consumption/(Disposable Income*(Revenue-Tax Imposed))

Tax Incidence for Customers

Go Tax Incidence = 100*(Elasticity of Supply/(Elasticity of Demand+Elasticity of Supply))

Tax Incidence for Producers

Go Tax Incidence = 100*(Elasticity of Demand/(Elasticity of Demand+Elasticity of Supply))

Tax Burden for Customers

Go Tax Burden = Elasticity of Supply/(Elasticity of Demand+Elasticity of Supply)

Tax Burden for Suppliers

Go Tax Burden = Elasticity of Demand/(Elasticity of Demand+Elasticity of Supply)

Budget Balance

Go Budget Balance = Tax Revenue-Government Consumption-Transfer Payments

Tax Multiplier

Go Tax Multiplier = ((1-Marginal Propensity to Consume)/Marginal Propensity to Save)

Tax Elasticity

Go Tax Elasticity = Change in Tax Revenue/Change in Economic Activity

Marginal Tax Rate

Go Marginal Tax Rate = Change in Taxes Paid/Change in Taxable Income

Marginal Propensity to Save

Go Marginal Propensity to Save = Change in Savings/Change in Income

Debt to GDP Ratio

Go Debt to Gdp = Total Debt of Country/Gross Domestic Product (GDP)

Budget Deficit

Go Budget Deficit = Government Expenditure-Government Income

Tax Buoyancy

Go Tax Buoyancy = Change in Tax Revenue/Change in GDP

Average Tax Rate

Go Average Tax Rate = Tax Paid/Net Income

Tax Liability

Go Tax Liability = Tax Base*0.01*Tax Rate

Tax Revenue

Go Tax Revenue = Tax Liability*Taxpayer

Laffer Curve

Go Revenue = Tax Rate*Taxable Base

Average Tax Rate Formula

Average Tax Rate = Tax Paid/Net Income
ATR = TP/NI

What is Average Tax Rate?

The average tax rate is the ratio of total taxes paid to total taxable income, expressed as a percentage. It represents the overall tax burden on an individual or entity's income and is calculated by dividing the total taxes paid by the total taxable income.
The average tax rate provides a broad measure of the tax burden relative to income and is useful for comparing tax liabilities across different income levels or assessing the overall progressivity of a tax system.

How to Calculate Average Tax Rate?

Average Tax Rate calculator uses Average Tax Rate = Tax Paid/Net Income to calculate the Average Tax Rate, The Average Tax Rate formula is the ratio of total taxes paid to total taxable income, expressed as a percentage. Average Tax Rate is denoted by ATR symbol.

How to calculate Average Tax Rate using this online calculator? To use this online calculator for Average Tax Rate, enter Tax Paid (TP) & Net Income (NI) and hit the calculate button. Here is how the Average Tax Rate calculation can be explained with given input values -> 0.125 = 250000/2000000.

FAQ

What is Average Tax Rate?

The Average Tax Rate formula is the ratio of total taxes paid to total taxable income, expressed as a percentage and is represented as ATR = TP/NI or Average Tax Rate = Tax Paid/Net Income. Tax Paid refers to the total amount of money remitted to the government by individuals or entities in fulfillment of their tax obligations & Net income is a company's total earnings.

How to calculate Average Tax Rate?

The Average Tax Rate formula is the ratio of total taxes paid to total taxable income, expressed as a percentage is calculated using Average Tax Rate = Tax Paid/Net Income. To calculate Average Tax Rate, you need Tax Paid (TP) & Net Income (NI). With our tool, you need to enter the respective value for Tax Paid & Net Income and hit the calculate button. You can also select the units (if any) for Input(s) and the Output as well.

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