Tax Rate

What Does Tax Rate Mean?
1. The rate at which a business or person is taxed on income.

2. The rate of tax on good and services.

Investopedia explains Tax Rate
1. For example, consider an individual with an income tax rate of 30%. For every $100,000 that individual makes, $30,000 ($100,000 x 0.30) must be paid as tax.  

There are three main types of tax rates: progressive, proportional and regressive.

2. For example, (as of 2005) in New York State the state tax rate is 4.25%. If you buy a $1,000 television from a store, the total purchase price will be $1,042.50, with $42.50 in tax paid to the state of New York.