Ann pays $3,850 in taxes on an income of $38,500. Therefore her

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Quizplus · Accepted Answer

The average tax rate can be calculated by dividing the amount of taxes paid by the amount of income. In this case, 3850/38500 = 0.10, or 10%. This means that Ann's average tax rate is 10%. The marginal tax rate cannot be determined from this information, as it is the rate at which the next dollar of income would be taxed and depends on the tax brackets and rates in the tax system. The personal exemption is also not relevant to this calculation. The fact that Ann's average tax rate is 10% does not necessarily mean that the tax system is progressive or proportional, as that would depend on the structure of the tax system as a whole.

Ann Pays $3,850 in Taxes on an Income of $38,500