Suppose your total taxable income this year is $75,000. You are taxed at a rate of 10 percent on the first $25,000, 20 percent on the next $25,000, and 30 percent on the final $25,000. What is your total income tax?

Question

Katelyn Richard

Mathematics

22 December, 04:53

Suppose your total taxable income this year is $75,000. You are taxed at a rate of 10 percent on the first $25,000, 20 percent on the next $25,000, and 30 percent on the final $25,000. What is your total income tax?

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Answers (1)

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Catalina Adkins · Answer 1

1) $25,000 * 10% = $2,500

2) $25,000 * 20% = $5,000

3) $25,000 * 30% = $7,500

Total income tax = $2,500 + $5,000 + $7,500 = $15,000.

Answer: $15,000

You could calculate the average tax rate: [$15,000 / $75,000] * 100 = 20%