At income levels above the limit for the lowest tax bracket,the average tax rate is:

Question

Quizplus · Accepted Answer

The average tax rate is calculated by dividing the total tax paid by the total taxable income. As income rises, taxpayers will move up into higher tax brackets where the marginal tax rate is higher, but the average tax rate will still be lower than the marginal tax rate because only the income in the higher tax bracket is taxed at the higher rate. Therefore, the average tax rate is always less than the marginal tax rate.

At Income Levels Above the Limit for the Lowest Tax