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 ($) • E is the total amount earned ($)

To calculate the tax rate, divide the amount paid in taxes by the amount earned, then multiply by 100.

## How to Calculate Tax Rate?

The following example problems outline how to calculate Tax Rate.

Example Problem #1:

1. First, determine the total amount paid in taxes ($). • The total amount paid in taxes ($) is given as: 10,000.
2. Next, determine the total amount earned ($). • The total amount earned ($) is provided as: 50,000.
3. 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 = ?