The ratio of the total taxes paid, divided by the total income. Usually this is expressed as a percent, such as an individual having a 28% average tax rate, which means they pay 28% of their income to taxes.

Previous Terms: 1031 Exchange, 1035 Exchange, AARP, Abeyance, Abstraction Principle, Accelerated Amortization, Acceptance Credit, Acceptance of a Bill of Exchange, Accommodation Bill, Accommodation Endorser