Why is my tax rate 8.36%?

[Ashby · Accepted solution]

That is your effective tax rate after accounting for credits and deductions.

[konwumere]

In doing calculations, that is not. It only adds up as the tax rate on the gross.

[Ashby]

Yes, that's right. It's based off of your gross income. That's why it's effective tax rate. Your bracket is higher, but this is what you really pay. The reason you only pay this percentage on gross is deductions and credits.