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27 votes
27 votes
How do you calculate the total percentage of income for taxes

User Jalal Sordo
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1 Answer

5 votes
5 votes

Answer:

I think you are supposed to Divide taxes based off net profit to calculate the effective tax percentage.

Explanation:

In the example, $35,000 divided by $100,000 equals an effective tax rate of 0.35 or 35 percent.

hope this helps! :)

(i don't know if this is 100% correct just so you know)

User Igor Bukanov
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2.8k points