Tax Rate

A tax rate is the percentage of your income or the value of an item that you are required to pay to the government in taxes. It determines how much money you owe based on your earnings or purchases. For example, if the tax rate is 10% and you earn $1,000, you would pay $100 in taxes. Different types of taxes, such as income tax or sales tax, have varying rates. Tax rates help governments collect funds to provide public services like schools, roads, and healthcare.