The average tax rate is calculated by dividing

A) taxes paid by taxable income.
B) taxable income by taxes paid.
C) additional taxes paid by additional taxable income.
D) additional taxable income by additional taxes paiD.

Average Tax Rate

The fraction of total income that is paid as taxes, calculated by dividing the total tax paid by the total income.

Taxable Income

Income subject to tax, after deductions and exemptions, according to the laws of the tax system.