Question

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 ________.

Answer 1

Answer:

The effective rate of tax is 17.6%

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%