Tax Rate Calculator

Formula

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

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

Where:

$ TXR $ is the Tax Rate (%).
$ AP $ is the total amount paid in taxes ($).
$ E $ is the total amount earned ($).

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:

Amount Paid in Taxes (AP): $5000
Amount Earned (E): $50000

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%.