Take a look at this article that explains the marginal and effective tax rates. These ratios are more commonly used.
Blended tax rate = tax liability / taxable income - this number is not used by anyone, but TurboTax.
More detailed, the Blended Tax rate is:
- Tax liability (Including SE tax, capital gain and special taxes),
- Divided by ÷
- Taxable income (Total income minus deductions, but before credits).
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