If provincial tax rates are 16% on the first $40,100; 20% on the next $40,100; and 24% on any income after that. If a resident had income of $102,000, then determine the average provincial tax rate.

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Quizplus · Accepted Answer

The average tax rate is calculated by dividing the total tax paid by the total income. For an income of $102,000: - The first $40,100 is taxed at 16%, which equals $6,416. - The next $40,100 is taxed at 20%, which equals $8,020. - The remaining $21,800 ($102,000 - $80,200) is taxed at 24%, which equals $5,232. The total tax paid is $6,416 + $8,020 + $5,232 = $19,668. The average tax rate = ($19,668 / $102,000) * 100 = 19.28%.

If Provincial Tax Rates Are 16% on the First $40,100;