Average Tax Rate February 15, 2015 by John Baer Average Tax Rate Average Tax Rate means:the rate obtained when total taxes paid are divided by income. It indicates the amount of tax paid per dollar earned. See Tax Rate and Tax Rate. Related Entries in the American Tax Encyclopedia: Average Daily Production Effective Tax Rate Average Benefit Test Marginal Tax Bracket Underpayment Rate Applicable Federal Rate Blended Rate Assessed Valuation Interest Rate Tax Rate Schedules Millage Rate Pretax Rate of Return Tax Bracket Section 6621(c) Rate Reduced Rate Regular Installment Method Dollar Value Lifo Deferral of Taxes Maximum Tax Rate on Capital Gains Foreign Tax Credit Fixed and Variable Rate Allowances Annualizing Refundable Credit Nonrefundable Credit Tax Credit