Joe and Sally file for federal taxes as married filing jointly. They originally anticipated that they will pay a total of $28,765 in taxes on an estimated taxable income of $168,400. When they filed their taxes at the end of the year, they calculated their tax burden to be $30,193 on a taxable income of $174,351. What was Joe and Sally's actual average tax rate at the end of the year?

Question

Quizplus · Accepted Answer

The actual average tax rate is calculated by dividing the total tax paid by the taxable income. In this case, the actual average tax rate is $30,193 / $174,351 = 17.32%.

Joe and Sally File for Federal Taxes as Married Filing