To determine the effective tax rate for a taxable income of \[tex]$145,690 using the marginal tax rate chart, we'll go through the income brackets step by step, calculate the tax for each bracket, and then find the effective tax rate.
1. First Bracket: \$[/tex]0 - \[tex]$10,275 at 10%
Taxable income in this bracket: \$[/tex]10,275
Tax: [tex]\(10,275 \times 0.10 = \$1,027.50\)[/tex]
2. Second Bracket: \[tex]$10,276 - \$[/tex]41,175 at 12%
Taxable income in this bracket: [tex]\(41,175 - 10,275 = \$30,900\)[/tex]
Tax: [tex]\(30,900 \times 0.12 = \$3,708.00\)[/tex]
3. Third Bracket: \[tex]$41,176 - \$[/tex]89,075 at 22%
Taxable income in this bracket: [tex]\(89,075 - 41,175 = \$47,900\)[/tex]
Tax: [tex]\(47,900 \times 0.22 = \$10,538.00\)[/tex]
4. Fourth Bracket: \[tex]$89,076 - \$[/tex]170,050 at 24%
Taxable income in this bracket: [tex]\(145,690 - 89,075 = \$56,615\)[/tex] (since \[tex]$145,690 is less than \$[/tex]170,050)
Tax: [tex]\(56,615 \times 0.24 = \$13,598.60\)[/tex]
Now, we sum up the tax amounts from each bracket:
[tex]\[
\$1,027.50 + \$3,708.00 + \$10,538.00 + \$13,598.60 = \$28,872.10
\][/tex]
The total tax amount is \[tex]$28,872.10.
To find the effective tax rate, we divide the total tax amount by the taxable income and multiply by 100 to get the percentage:
\[
\text{Effective Tax Rate} = \left( \frac{\$[/tex]28,872.10}{\[tex]$145,690} \right) \times 100 \approx 19.82\%
\]
So, the effective tax rate for a taxable income of \$[/tex]145,690 is approximately 19.82%.
The correct answer is:
[tex]\[
\boxed{19.81\%}
\][/tex]
