When income is $15,000, the amount of income taxes owed is $1,500; when income increases to $20,000, the amount owed increases to $3,000. The average income tax rate when a person earns $15,000 is

Question

Quizplus · Accepted Answer

The average income tax rate is calculated by dividing the amount of taxes owed by the income. For an income of $15,000 with taxes owed of $1,500, the average tax rate is $1,500 / $15,000 = 0.10, or 10%.

When Income Is $15,000, the Amount of Income Taxes Owed