The average rate of tax (ART) is the total tax paid divided by total income, typically expressed as a percentage. It measures the overall proportion of income paid in tax.

• This applies to an individual’s or organisation’s entire taxable income.
• It provides a comprehensive view of the tax burden, incorporating all applicable tax brackets and income levels.
• Example: With total income of $100,000 and tax of $30,000, ART = ($30,000 / $100,000) × 100% = 30%.