The table below shows 2012 federal income- tax rates in Canada. $$\begin{array} { | c | c | }
\hline \text { Taxable Income } & \text { Mar ginal Tax Rate } \
\hline \$ 0 - \$ 42707 & 15 \% \
\hline \$ 42708 - \$ 85414 & 22 \% \
\hline \$ 85415 - \$ 132406 & 26 \% \
\hline \$ 132407 \text { and over } & 29 \% \
\hline
\end{array}$$ TABLE 18- 1
-Refer to Table 18- 1.If an individual had a taxable income of $120 000,how much federal tax would be due?

Question

The table below shows 2012 federal income- tax rates in Canada. $$\begin{array} { | c | c | } 
\hline \text { Taxable Income } & \text { Mar ginal Tax Rate } \
\hline \$ 0 - \$ 42707 & 15 \% \
\hline \$ 42708 - \$ 85414 & 22 \% \
\hline \$ 85415 - \$ 132406 & 26 \% \
\hline \$ 132407 \text { and over } & 29 \% \
\hline
\end{array}$$ TABLE 18- 1
-Refer to Table 18- 1.If an individual had a taxable income of $120 000,how much federal tax would be due?

Quizplus · Accepted Answer

The tax is calculated by applying each rate to the portion of income within each bracket:  - 15% on $42,707 = $6,406.05  - 22% on $42,707 = $9,395.54  - 26% on $34,585 ($120,000 - $85,415) = $8,992.10  Total tax = $6,406.05 + $9,395.54 + $8,992.10 = $24,793.69 (rounded to $24,794).

The Table Below Shows 2012 Federal Income- Tax Rates in Canada