Average tax rate
The tax rate is the percentage of income or amount of money that must be paid as tax.(Collins dictionary)
In other words, it is the total amount of tax paid divided by taxable income. Average tax rates measure the tax burden, while marginal tax rates measure the effect of taxes on incentives to earn, save, invest, or spend. (Tax Foundation)
Average tax rate is defined as the provision for income taxes as a percent of Income Before Income Taxes. All other values used in the calculation of ROIC are quantified in the Company’s GAAP Balance Sheet, and have the same meaning as used for purposes of preparing the Company’s Consolidated Balance Sheet for the relevant fiscal year in accordance with GAAP.(Law Insider)
Average tax rate Definition /Law Insider. (2023). Law Insider. https://www.lawinsider.com/dictionary/average-tax-rate
Tax Foundation. (2023, December 6). Average Tax Rate Definition/Tax Foundation. https://taxfoundation.org/taxedu/glossary/average-tax-rate/
Tax rate definition and meaning /Collins English Dictionary. (2023). In Collins Dictionaries. https://www.collinsdictionary.com/dictionary/english/tax-rate