Question

Maria has a total tax of $3072 and a gross income of $60449. What is her effective tax rate (as a percent)?

Answer 1

Effective tax rate of Maria is 5.08%.

Explanation:

Effective tax rate ETR =
`(Total tax)/(gross income)`

As a percent we can represent ETR =
`(Total tax)/(Taxable income)`×100

In this question Maria has a total tax = $3072 and gross income = $60449

By putting these values in the formula ETR =
`(3072)/(60449)`×100 = 5.08

Therefore her effective tax rate is 5.08%.