The total amount of taxes paid by an individual or business divided by taxable income. This rate will vary based on the amount of income received during the taxable period. For example, if Steve paid $3,000 in taxes on income of $25,000, his average tax rate would be 12%. Formula: Paid taxes/taxable income = average tax rate.

Related information about average tax rate:

1. Tax rate - Wikipedia, the free encyclopedia
   An average tax rate is the ratio of the amount of taxes paid to the tax base ... To calculate the average tax rate on an income tax, divide total tax liability by taxable ...
    
2. Average Tax Rate - Financial Dictionary - The Free Dictionary
   Taxes as a fraction of income; total taxes divided by total taxable income. Effective Tax Rate. The tax rate one pays assuming that one pays a flat rate rather than ...
    
3. Fox Hypes Romney's Misleading Average Tax Rate Claim | Blog ...
   Sep 24, 2012 ... Fox News host Neil Cavuto and his guest hyped Mitt Romney's claim that he " paid [a] 20 percent effective tax rate" based on the release of ...
    
4. Marginal Tax Rates Matter More Than Average Tax Rates - Forbes
   Oct 10, 2012 ... Each year when I complete my federal income tax return, Turbotax tells me my average tax rate—how much tax I owe measured as a ...
    
5. Marginal and average tax rate
   What is the difference between a marginal and average tax rate? Even though it may not be so obvious, understanding the difference between a marginal and ...
    
6. Washington Post Errors on Romney's Average Tax Rate | Tax ...
   Aug 17, 2012 ... We often wonder where the “facts” come from for some of the more misleading political commercials on TV. As today's Washington Post story ...
    
7. Romneys Paid Average Tax Rate of 20.2% in 20-Year Period | Fox ...
   Sep 21, 2012 ... Mitt and Ann Romney paid an average effective federal tax rate of 20.2% and owed both state and federal income taxes every year over the ...
    
8. Average Tax Rate Calculator - SmartMoney.com
   Use this calculator to find your average tax rate and to see how it changes at different income levels.