Source: Economics: Principles & Practices Definition: total taxes paid divided by the total taxable income (p.229)

The effective rate of tax that a taxpayer is paying on taxable income calculated by dividing the total taxes payable by the taxable income. The terms "average tax rate" and "effective tax rate" are synonymous.

Total employer contributions for a 12 month period divided by the total taxable wages employers for the same period. (ES 202)

An individual's average tax rate is the result of total income taxes paid divided by taxable income. For example, if an individual has taxable income for the year of $50,000 and paid income taxes of $10,000, the average tax rate would be 20%. ($10,000 w $50,000 = .20).

The percentage of income that is paid in tax.

Percentage of tax paid on the entire taxable income

Before tax profit margin Book cash