Question

What are proportional taxes?

What is proportional tax?

Answer 1

When the tax rate stays constant as the taxpayer’s income rises, the tax is said to be proportionate. With this tax structure, regardless of the taxpayer’s income, all incomes are subject to a single, uniform rate of taxation.

Income (₹)	Proportional tax Rate
5 Lakhs	20%
10 Lakhs	20%
15 Lakhs	20%
20 Lakhs	20%

Answer 2

A tax is called proportional when the rate of taxation remains constant as the income of the taxpayer increases.