topic Why is Turbotax using a blended tax rate of 17.1% when I should be in the 10% and 12% brackets? in Retirement tax questions

Why is Turbotax using a blended tax rate of 17.1% when I should be in the 10% and 12% brackets?

rachelileenen — Tue, 03 Feb 2026 13:01:12 GMT

Re: Why is Turbotax using a blended tax rate of 17.1% when I should be in the 10% and 12% brackets?

DianeW777 — Wed, 05 Feb 2025 19:53:58 GMT

A blended tax rate, also known as the effective tax rate, is arrived at by any number of factors. The effective tax rate for individuals is the average rate at which their earned income, such as wages, and unearned income, such as stock dividends, are taxed. If you received income from a variety of things like stocks and bonds, interest, dividends, wages or self-employment, this may all play a role in determining your blended tax rate.

It's a calculation based on overall income and the amount of tax calculated on the tax return and is not specifically a marginal or capital gains tax rate or the specific rate based on your taxable income. Keep in mind the tax rate is graduated and begins at zero and rises based on filing status and income levels.

Federal Tax Rates and Brackets

Re: Why is Turbotax using a blended tax rate of 17.1% when I should be in the 10% and 12% brackets?

SteamTrain — Wed, 05 Feb 2025 21:07:08 GMT

Those who have SE income commonly see an unexpected higher blended rate than their "marginal" tax rates, because they also pay the full load of Medicare and SS taxes on their Self-Employment net income.