To determine the effective tax rate for a taxable income of [tex]$145,690, we will use the marginal tax rate chart provided. The chart shows how income is taxed at different rates based on the income brackets. Here is the step-by-step process to calculate the total tax and then the effective tax rate:
1. Determine how much income falls into each bracket:
- The first $[/tex]10,275 is taxed at 10%.
- The income from [tex]$10,276 to $[/tex]41,175 is taxed at 12%.
- The income from [tex]$41,176 to $[/tex]89,075 is taxed at 22%.
- The income from [tex]$89,076 to $[/tex]145,690 is taxed at 24%.
2. Calculate the tax for each portion:
- For the first bracket ([tex]$0 - $[/tex]10,275):
[tex]\[
10,275 \times 0.10 = 1,027.50
\][/tex]
- For the second bracket ([tex]$10,276 - $[/tex]41,175):
[tex]\[
(41,175 - 10,275) \times 0.12 = 30,900 \times 0.12 = 3,708
\][/tex]
- For the third bracket ([tex]$41,176 - $[/tex]89,075):
[tex]\[
(89,075 - 41,175) \times 0.22 = 47,900 \times 0.22 = 10,538
\][/tex]
- For the fourth bracket ([tex]$89,076 - $[/tex]145,690):
[tex]\[
(145,690 - 89,075) \times 0.24 = 56,615 \times 0.24 = 13,587.60
\][/tex]
3. Sum the tax from each bracket to find the total tax:
[tex]\[
1,027.50 + 3,708 + 10,538 + 13,587.60 = 28,861.10
\][/tex]
4. Calculate the effective tax rate:
[tex]\[
\left(\frac{28,861.10}{145,690}\right) \times 100 \approx 19.81\%
\][/tex]
Hence, the effective tax rate for a taxable income of $145,690 is:
[tex]\[ \boxed{19.81\%} \][/tex]
