The average tax rate is the tax rate that is paid on the las

The average tax rate is:

the tax rate that is paid on the last dollar of income earned

always higher than the marginal tax rate

calculated by dividing the total taxes paid by the taxable income

none of the above

Solution

The average tax rate is the total amount of taxes paid by an individual or business divided by taxable income. This rate will vary based on the amount of income received during the taxable period.

Thus the correct option is C