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Steven and Sally have income from all sources (taxable and nontaxable) totaling $140,286. Their taxable income is $114,966. Their tax liability is $20,219. Their effective tax rate is ________.
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Steven and Sally have income from all sources (taxable and nontaxable) totaling $140,286. Their taxable income is $114,966. Their tax liability is $20,219. Their effective tax rate is ________.

User FuzzyTemper
by
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1 Answer

3 votes

Answer:

The effective rate of tax is 17.6%

Step-by-step explanation:

Effective rate of tax is computed by taking tax paid divided by taxable income and the answer expressed in percentage terms.

Hence the effective tax for this scenario=$20,219/$114,966*100%

User Gokhan Atil
by
4.0k points
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