Your ________ tax rate measures the total taxes you pay divided by your total taxable income.

Question

Quizplus · Accepted Answer

The average tax rate measures the total taxes paid divided by the total taxable income, giving an overall picture of the effective tax rate that the individual or entity is paying. The marginal tax rate, on the other hand, refers to the tax rate that applies to the next increment of taxable income, and not the overall tax burden. Total tax rate and deductible tax rate are not commonly used terms in taxation. Residual tax rate is not a term used in tax calculations.

Your ________ Tax Rate Measures the Total Taxes You Pay