Definition of "Tax rate"

Amount of tax to be paid based on taxable income. The tax rate usually changes as the unit of the tax base changes.

  1. Individual: Tax rate depends on whether the tax return is for a single filer, joint filer, or head of household. For example, the maximum tax rate for a joint filer in 1994 is 39,6% for taxable income over $250,000. The tax rate is 36% for taxable income over $140,000 but less than $250,000.
  2. Corporation: The maximum tax rate in 1994 for a corporation is 35%.

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