Tax Rate Calculator

Calculate Tax Rate



Formula

The formula to calculate the Tax Rate (TXR) is:

\[ TXR = \frac{AP}{E} \times 100 \]

Where:

What is a Tax Rate?

The tax rate is the percentage of income or value of goods that is paid as tax. It is calculated by dividing the amount paid in taxes by the amount earned, then multiplying by 100. This rate helps determine how much of your earnings go towards taxes.

Example Calculation

Consider an example where:

Using the formula to calculate the Tax Rate:

\[ TXR = \frac{5000}{50000} \times 100 = 10 \% \]

This means that the tax rate for this example is 10%.