Tax rate

The tax rate is the amount at which you tax your citizen’s income on a daily basis. Suppose you have a citizen that earns $100 a day and you have a tax rate set at 25%. You will collect $25 from this citizen per day. If you have 50 citizens in your nation then you will collect ($25 x 50 =) $1250 from your population in income taxes per day. Lowering your tax rate lowers the percentage of taxes each of your citizen’s pay on their income but increases your population happiness. The happier your population is the more money they will make, so sometimes lower tax rates will earn you more money than would a higher tax rate