The percentage of an entity’s income, goods, services or assets that is paid as a tax. The nature of this tax rate is not marginal. The three broad categories of tax rates are progressive, proportional, and regressive. With progressive taxes, the percentage tax that is paid increases as the amount subject to the tax increases. In the case of a percentage tax, the percentage of the tax remains constant as the amount subject to the tax increases. When a regressive tax is applied, the percentage amount paid in taxes decreases as the amount subject to the tax increases. Thus, overall tax rates are determined on an individual basis and vary depending upon how much of each tax is applied.