Question

What is the tax rate in percent of someone who pays $17,000 in taxes on an income of $80,000 ?

Answer 1

Main Answer:

The tax rate for someone paying $17,000 in taxes on an income of $80,000 is 21.25%.

Step-by-step explanation:

To calculate the tax rate, you divide the amount of taxes paid by the income and then multiply by 100 to express it as a percentage. In this case, the formula is:

`\[ \text{Tax Rate} = \left( \frac{\text{Taxes Paid}}{\text{Income}} \right) * 100 \]`

Substituting the given values, we get:

`\[ \text{Tax Rate} = \left( (17,000)/(80,000) \right) * 100 \]`

Solving this expression gives the tax rate as 0.2125. To express it as a percentage, we multiply by 100, yielding a tax rate of 21.25%.

Understanding the tax rate is essential for individuals to assess the portion of their income allocated to taxes. It's a key metric for financial planning and budgeting, helping individuals make informed decisions about their income and expenses. In this scenario, the tax rate indicates that approximately 21.25% of the individual's income goes towards taxes, providing valuable information for financial management.