USE THIS INFORMATION FOR THE NEXT THREE QUESTIONS.
A federal tax table contains the following excerpt:
If taxable income is:

-What average effective tax rate does the person pay?

Question

USE THIS INFORMATION FOR THE NEXT THREE QUESTIONS.
A federal tax table contains the following excerpt:
If taxable income is:

-What average effective tax rate does the person pay?

Quizplus · Accepted Answer

The average effective tax rate is calculated by dividing the total tax paid by the total income. In this case, the person pays $1,000 in taxes on $10,000 of income, so the average effective tax rate is 10%.