LAST YEAR OUR TAX RATE WAS 10% THIS YEAR IT IS SHOWING 2.54% IS THAT RIGHT?

Forum|Forum|7 years ago
June 3, 2019
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You could be referring to your effective tax rate and not your tax bracket which could be correct (especially if you are getting a refund).

The effective tax rate for individuals is the average rate at which their earned income is taxed. Meaning although you may be in the 10% tax bracket, you do not pay 10% tax on your income.

Instead after all deductions and credits, you only pay 2.54% of your income in tax (and are probably getting a refund).

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You could be referring to your effective tax rate and not your tax bracket which could be correct (especially if you are getting a refund).

The effective tax rate for individuals is the average rate at which their earned income is taxed. Meaning although you may be in the 10% tax bracket, you do not pay 10% tax on your income.

Instead after all deductions and credits, you only pay 2.54% of your income in tax (and are probably getting a refund).