percentage, called the tax rate. An important distinction when talking about tax rates is to distinguish between the marginal rate and the effective tax rate. The effective rate is the total tax paid divided by the total amount the tax is paid on, while the marginal rate is the rate paid on the next dollar of income earned. For example, if income is taxed on a formula of 5% from $0 up to $50,000, 10% from $50,000 to $100,000, and 15% over $100,000, a taxpayer with income of $175,000 would pay a total of $18,750 in taxes. Tax calculation (0.05*50,000) + (0.10*50,000) + (0.15*75,000) = 18,750 The "effective rate" would be 10.7%: 18,750/175,000 = 0.107 The "marginal rate" would be 15%. See also Advance tax ruling Black market DIRTI 5 Excess burden of taxation Fiscal capacity Fiscal incidence Fiscal sociology Government budget balance International taxation List of taxes Price ceiling Price floor Revolutionary tax Shadow economy Tax competition Tax exporting Tax haven Taxpayer receipt Tax revenue Tax resistance Tax shelter By country or region List of countries by tax rates List of countries by tax revenue as percentage of GDP Revenue service :Category:Taxation by country References Further reading My taxes go where? How countries spend your money (17 February 2015), The BBC Genschel, Philipp; Seelkopf, Laura, eds. (2022). Global Taxation: How Modern Taxes Conquered the World. Oxford University Press. Seelkopf, L., Bubek, M., Eihmanis, E. et al. The rise of modern taxation: A new comprehensive dataset of tax introductions worldwide. Rev Int Organ (2019). External links Tax introduction database – A dataset of the introduction of taxes in 220 countries, 1750-2018. OECD tax statistics OECD portal on Tax ICTD/UNU-WIDER, Government Revenue Dataset compilation of tax data mainly from OECD and IMF Tax Levy Featured - Managing through an IRS tax levy So what is an IRS tax levy? 3rd-millennium BC establishments in Egypt Egyptian inventions 30th-century BC establishments