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 marginal provincial tax rate.

Question

Quizplus · Accepted Answer

The marginal tax rate is the rate at which the last dollar of income is taxed. In this scenario, since the resident's income of $102,000 exceeds the first two brackets, the marginal rate is the rate applied to income above $80,200 (the sum of the first two brackets), which is 24%.

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