Scenario: You are a U.S. taxpayer who had taxable income of $200,000 in 2017. You paid $49,400 in individual income taxes, and you paid 33 cents of the last dollar you earned as individual income tax.
-Refer to the above scenario.What is your average tax rate? Explain your answer.

Question

Quizplus · Accepted Answer

The average tax rate is calculated as the total amount of taxes paid divided by the taxable income. In this case, the total amount of taxes paid was $49,400 and the taxable income was $200,000. Thus, the average tax rate is (49,400/200,000) x 100 = 24.7%.

Scenario: You Are a U