tax rate

American  

noun

1. the percentage of the value of a property to be paid as a tax.

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tax rate British  

noun

1. the percentage of income, wealth, etc, assessed as payable in taxation

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Etymology

Origin of tax rate

First recorded in 1875–80

Example Sentences

Some Americans may have noticed their effective tax rate has increased even though rates haven’t changed.

From The Wall Street Journal • May 14, 2026

A poorly timed conversion could eliminate deductions worth tens of thousands of dollars, effectively raising your true tax rate far beyond what your bracket suggests.

From MarketWatch • May 8, 2026

As equity typically earns about 9% a year, that asset tax would constitute a marginal tax rate on the very richest of just 11% of their average annual gain.

From MarketWatch • May 7, 2026

The tax reimbursement estimate for Zaslav, who lives in New York, was “calculated based on a 20.00% excise tax rate and an estimated effective tax rate of 54.126% ,” Warner said.

From Los Angeles Times • Apr. 9, 2026

In fact, when tax parameters are indexed in a certain way, then the tax can have the same growth rate as income, and then the dynamic marginal rate equals the average tax rate.

From Definition & Reality in the General Theory of Political Economy by Colignatus, Thomas