Calculate the average tax rate

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Reference no: EM132341459

Use the following tax brackets for taxable income for question #1 and #2:

Bracket Tax Rate

$0 - $10,000 13%

$10,000 - $35,000 20%

$35,000 - $250,000 32%

over $250,000 39%

Charles's taxable income last year is $410,000. Please compute his marginal rate, and his average tax rate using the tax brackets.

1. Calculate the average tax rate.

a. 36.69% b. 34.17% c. 33.54% d. 31.62%

2. What is the marginal rate?

a. 13% b. 39% c. 22% d. 20%

Reference no: EM132341459

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