Tax rates refer to the percentage at which income, goods, or services are taxed by the government. These rates can vary based on factors such as income level, type of tax, and jurisdiction. For example, income tax rates often increase with higher earnings, while sales tax is typically a fixed percentage applied to purchases. Different countries and regions have their own tax systems, leading to varying tax rates. Progressive tax systems impose higher rates on higher income brackets, while flat tax systems apply the same rate to all income levels. Understanding tax rates is essential for individuals and businesses to manage their finances effectively.