use the marginal tax rate chart to answer the question.\nmarginal tax rate chart\ntax bracket | marginal tax…

use the marginal tax rate chart to answer the question.\nmarginal tax rate chart\ntax bracket | marginal tax rate\n$0–$10,275 | 10%\n$10,276–$41,175 | 12%\n$41,176–$89,075 | 22%\n$89,076–$170,050 | 24%\n$170,051–$215,950 | 32%\n$215,951–$539,900 | 35%\n> $539,901 | 37%\ndetermine the effective tax rate for a taxable income of $75,400. round the final answer to the nearest hundredth.\n10.05%\n16.27%\n22.00%\n24.90%

use the marginal tax rate chart to answer the question.\nmarginal tax rate chart\ntax bracket | marginal tax rate\n$0–$10,275 | 10%\n$10,276–$41,175 | 12%\n$41,176–$89,075 | 22%\n$89,076–$170,050 | 24%\n$170,051–$215,950 | 32%\n$215,951–$539,900 | 35%\n> $539,901 | 37%\ndetermine the effective tax rate for a taxable income of $75,400. round the final answer to the nearest hundredth.\n10.05%\n16.27%\n22.00%\n24.90%

Answer

Explanation:

Step1: Identify tax brackets and calculate tax for each bracket

  • Bracket 1: $0 - $10,275, rate 10%. Tax: $10,275 * 0.10 = $1,027.50
  • Bracket 2: $10,276 - $41,175, rate 12%. Amount: $41,175 - $10,275 = $30,900. Tax: $30,900 * 0.12 = $3,708
  • Bracket 3: $41,176 - $89,075, rate 22%. Our income is $75,400, so amount: $75,400 - $41,175 = $34,225. Tax: $34,225 * 0.22 = $7,529.50

Step2: Sum total tax

Total tax = $1,027.50 + $3,708 + $7,529.50 = $12,265

Step3: Calculate effective tax rate

Effective tax rate = (Total tax / Taxable income) * 100 = ($12,265 / $75,400) * 100 ≈ 16.27%

Answer:

16.27%