The average tax rate is equal to:
A) total sales taxes divided by total expenditures
B) total expenditures divided by total income
C) total taxes paid divided by total income
D) total income divided by total taxes

Question

Quizplus · Accepted Answer

The average tax rate is the percentage of total income that is paid in taxes. Therefore, the correct choice is C which defines the calculation of the average tax rate as total taxes paid (numerator) divided by total income (denominator).

The Average Tax Rate Is Equal To