Article

Average Tax Rate
January 19 , 2013

Average Tax Rate is the rate of income tax that you pay after all income and deductions are taken into account. So it is the ratio of total tax liability to taxable income.

Average Tax Rate = Total Tax Liability

                                   Taxable Income

In India, the higher your annual income, the higher your average tax rate. This is known as progressive taxation.

This is more of a 'good to know' number, but it is difficult to directly act upon. The other rate, viz. the marginal tax rate, is a much more useful investment decision making tool.

Fintotal Knowledge the best place to learn more on personal finance.

The language is simplified and written specially for non finance background individuals.


Explore more in a easy manner.

Table of Contents

Table of Contents

  • No Article Listed
  • No Article Listed
  • No Article Listed
  • No Article Listed
  • No Article Listed
  • No Article Listed
  • No Article Listed
  • No Article Listed
  • No Article Listed
  • No Article Listed

Get the all financial products under one roof only at

you will NEVER GO WRONG with us!

Unbiased . Best Deals . Appropriate Products . No Mis-selling