Table 12-9
United States Income Tax Rates for a Single Individual, 2012 and 2013.
-Refer to Table 12-9. Samantha is a single person whose taxable income is $100,000 a year. What happened to her average tax rate between 2012 and 2013?

Question

Table 12-9
United States Income Tax Rates for a Single Individual, 2012 and 2013. 
-Refer to Table 12-9. Samantha is a single person whose taxable income is $100,000 a year. What happened to her average tax rate between 2012 and 2013?

Quizplus · Accepted Answer

In 2012, the tax rate for income between $82,401 and $171,850 was 28%, which would apply to Samantha's $100,000 taxable income. This means she would pay $28,080 in taxes in 2012, resulting in an average tax rate of 28.08%. In 2013, the tax rate for income between $89,351 and $186,350 was 28%, which still applies to her $100,000 taxable income. However, the tax brackets for lower income levels were adjusted, resulting in a lower total tax liability of $27,812, and thus a lower average tax rate of 27.81%. Therefore, her average tax rate decreased between 2012 and 2013.

Table 12-9 United States Income Tax Rates for a Single Individual, 2012