Assume a single taxpayer is taxed at 10% on the first $9,075 of taxable income, 15% on the next $27,825 of income, and at 25% for the following $52,450 of income. What is the average tax rate for that individual if her taxable income is $41,350?
A) 14.98%
B) 16.67%
C) 16.13%
D)19.98%

Question

Quizplus · Accepted Answer

The taxpayer pays 10% on $9,075, 15% on the next $27,825, and 25% on the remaining $4,450. The total tax is $907.50 + $4,173.75 + $1,112.50 = $6,193.75. The average tax rate is $6,193.75 / $41,350 = 14.98%.

Assume a Single Taxpayer Is Taxed at 10% on the First