Similar to how World of Warships do theirs. For this purpose each vehicle is assigned a certain weight, and the matchmaker tries to keep the weight of both teams as equal as possible. Despite fifteen years at uni and I wouldn't know where to start with it! And competing rumors as to things WG has said about it. I understand how a T10 guy can be upset to have a tomato playing at his level. Remember me.
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Improvements Coming to Asia: A Matchmaking Test and Bots
All as of 9. Most premium tanks have lowered battle tiers. I remember playing about 30 T1 battles with my T1 tanks on my secondary account.