Enter the total amount paid in taxes ($) and the total amount earned ($) into the Tax Rate Calculator. The calculator will evaluate the Tax Rate.

## Tax Rate Formula

The following two example problems outline the steps and information needed to calculate the Tax Rate.

**TXR = AP / E * 100**

- Where TXR is the Tax Rate (%)
- AP is the total amount paid in taxes ($)
- E is the total amount earned ($)

## How to Calculate Tax Rate?

The following example problems outline how to calculate Tax Rate.

Example Problem #1:

- First, determine the total amount paid in taxes ($).
- The total amount paid in taxes ($) is given as: 10,000.

- Next, determine the total amount earned ($).
- The total amount earned ($) is provided as: 50,000.

- Finally, calculate the Tax Rate using the equation above:

TXR = AP / E * 100

The values provided above are inserted into the equation below and computed.

TXR = 10,000 / 50,000 * 100 = 20.00 (%)

Example Problem #2:** **

For this problem, the variables required are provided below:

total amount paid in taxes ($) = 15,000

total amount earned ($) = 75,000

Test your knowledge using the equation and check your answer with the calculator.

TXR = AP / E * 100** = ?**