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.

Question

Quizplus · Accepted Answer

The total tax is calculated as follows: 16% of $40,100, 20% of the next $40,100, and 24% of the remaining $21,800. The total tax is $6,416 + $8,020 + $5,232 = $19,668. The average tax rate is $19,668 divided by $102,000, which is approximately 19.28%.

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