Determine the tax owed

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Question: When the income is $45,000, the marginal tax rate is 5%. To calculate the average tax rate, we need to determine the tax owed, which is $4,5000 minus the deduction of $10,000, resulting in $35,000. Applying the marginal tax rate of 5%, the tax owed is $1,750. The average tax rate can be calculated by dividing the tax owed by the total income, multiplied by 100. In this case, the average tax rate is 3.89%.

Reference no: EM133608433

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