Answer:
Their average tax rate is approximately 18%
Explanation:
The tax rate is the percentage of taxable income a person or corporation is required to pay as tax
The average tax rate is the ratio of the amount paid as tax to the amount of taxable income expressed as a percentage
The given parameters are;
The total income of Steven and Sally = $140,286
The taxable income of Steven and Sally = $114,966
The tax liability of Steven and Sally = $20,219
Therefore;
Their average tax rate = (Their tax liability)/(Their taxable income)×100
Which gives;
Their average tax rate = ($20,219)/($114,966) ×100 ≈ 17.6%
Their average tax rate ≈ 18% to the nearest whole number.
