One's average tax rate is typically lower than one's marginal tax rate.

Name: One's average tax rate is typically lower than one's marginal tax rate.
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This is because the average tax rate is calculated by dividing total tax paid by taxable income, which includes different tax brackets with different marginal tax rates. The marginal tax rate is the rate at which the last dollar of income is taxed. Therefore, it is always higher than the average tax rate.

One's Average Tax Rate Is Typically Lower Than One's Marginal