Question

If your taxable income is 86,000 and you pay taxes of 18,000 Your average tax rate rounded to the nearest

Answer 1

Average tax rate rounded to the nearest is 21%

Solution:

Average tax rate is total tax payable divided by the taxable income earned. Marginal tax rate will always be greater than average tax. The tax payable includes all the amount under every single income tax bracket of the individual. The formula for average tax is as follows

`\text {average tax rate}=\frac{\text {taxes payable}}{\text {taxable income}} * 100`

Given, tax payable = 18, 000

Taxable income=86,000

`\therefore \text { average tax rate }=(18,000)/(86,000) * 100=20.93 \%`

The average tax rate is approximately 21%.

Answer 2

The closest tax rate is 20%

Step-by-step explanation:

we analyze it as follows 86.000 * 20% = 17.200

who is the closest to 1800