What is average and marginal tax rate?

Help with marginal and average tax rate?

  • Answer:

    Marginal tax rate is the rate paid on the highest dollar. To get the average rate, calculate the total tax, then divide the tax by the income. Multiply that by 100 to turn it into a %.

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Marginal tax rate is the rate paid on the highest dollar. To get the average rate, calculate the total tax, then divide the tax by the income. Multiply that by 100 to turn it into a %.

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