Taxes are usually levied and collected by governments. They also constitute as a major source of a government’s revenue for most countries. There are various kinds of tax and tax rates; tax rates depend on a number of factors, which differ according to the type of tax.
Taxes are broadly categorized into two types, direct and indirect tax, for example:
Income tax, which is paid directly to the government is direct tax, Excise, value added, and sales tax (collected by intermediaries) are called indirect taxes.
As these taxes are imposed on different items, the rates are bound to vary.
Tax rate in case of income tax is determined by an individual’s income.
In United States of America, income tax varies between 0-35% of the total income and, along with this, the state imposes 0-9.3%.
In India, the income tax rate is 0-30%, and in the UK, 0-40%.
On the other hand, indirect taxes like sales tax and value added taxes are imposed on different levels of production and sale.
Value added taxes are determined by the added value of the commodity, which has been provided by the exchange. Tax rates for these differ in every country.
In the US, the value added tax rate is 8.5% and reaches 16.5% when certain other taxes are added with it, whereas in India, 12.50% is charged.
There are several other taxes and tax rates also change accordingly.
Following are the tax rates of some of the flourishing economies of the world:
|Countries||Income Tax Rate||Vat rate|
|Canada||15-29%||6% and the Provincial Sales Tax|
|France||5.5-40%||2.1% , 5.5%, 19.60%|
|New Zealand||0-39%||12.5% (GST)|
Last Updated on : 5th July 2013