Thursday, April 14, 2005

Effective Tax Rate

What is your effective Tax rate? I just finished my taxes and, as normal, my effective tax rate is about 17.6%. To get this number I take the total income, line 22 on a 1040 long form, and divide into the total tax paid. This comes out to about 0.176 or 17.6% for my wife and I. According to Turbo Tax, the average for my income range is about 18 % or so, so I guess I am doing pretty good.

Effective Tax Rate = Income Tax / Income * 100. Click the comments below and tell us your effective Tax Rate.

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