proportional tax

Written by

The Information Architects of Encyclopaedia Britannica

Last updated

July 13, 2026

Quick Summary

A proportional tax is a tax system where the tax rate remains constant, regardless of the amount of the tax base. This means that everyone pays the same percentage of their income in taxes. For example, if the tax rate is 10%, an individual earning $50,000 would pay $5,000 in taxes, while someone earning $100,000 would pay $10,000. This contrasts with progressive taxes, where the rate increases with income, and regressive taxes, where the rate decreases as income rises. Proportional taxes are sometimes referred to as flat taxes.12

Summary created from Britannica articles using AI. AI can make mistakes, so verify using Britannica articles.

3 Britannica Sources

Ask Britannica AI about this topic

Britannica doesn't have a full article on this topic, so we've curated a list of our relevant coverage.

taxation
Proportional, progressive, and regressive taxes
A proportional tax is one that imposes the same relative burden on all taxpayers—i.e., where tax liability and income grow in equal proportion. A progressive tax is characterized by a more than proportional rise in the tax liability relative to the increase in income, and a…
Read More
A proportional tax is one that imposes the same relative burden on all taxpayers—i.e., where tax liability and income grow in equal proportion. A progressive tax is characterized by a more than proportional rise in the tax liability relative to the increase in income, and a…
Read More