To determine the effective tax rate for a taxable income of [tex]$95,600, we need to follow the marginal tax rate chart and calculate the total amount of taxes owed and then compute the effective tax rate.
Here are the tax brackets and corresponding marginal tax rates for a single filer:
1. For income up to \$[/tex]10,275, the tax rate is 10%.
2. For income between \[tex]$10,276 and \$[/tex]41,775, the tax rate is 12%.
3. For income between \[tex]$41,776 and \$[/tex]89,075, the tax rate is 22%.
4. For income between \[tex]$89,076 and \$[/tex]170,050, the tax rate is 24%.
5. For income between \[tex]$170,051 and \$[/tex]215,950, the tax rate is 32%.
6. For income between \[tex]$215,951 and \$[/tex]539,900, the tax rate is 35%.
7. For income over \[tex]$539,900, the tax rate is 37%.
Given a taxable income of \$[/tex]95,600, let's calculate the total tax owed by summing up the taxes for each applicable bracket sequentially:
1. Income up to \[tex]$10,275:
\[
\$[/tex]10,275 \times 10\% = \[tex]$1,027.50
\]
2. Income from \$[/tex]10,276 to \[tex]$41,775:
\[
(\$[/tex]41,775 - \[tex]$10,275) \times 12\% = \$[/tex]31,500 \times 12\% = \[tex]$3,780
\]
3. Income from \$[/tex]41,776 to \[tex]$89,075:
\[
(\$[/tex]89,075 - \[tex]$41,775) \times 22\% = \$[/tex]47,300 \times 22\% = \[tex]$10,406
\]
4. Income from \$[/tex]89,076 to \[tex]$95,600:
\[
(\$[/tex]95,600 - \[tex]$89,075) \times 24\% = \$[/tex]6,525 \times 24\% = \[tex]$1,566
\]
Summing up all the taxes in each bracket, we get the total tax owed:
\[
\$[/tex]1,027.50 + \[tex]$3,780 + \$[/tex]10,406 + \[tex]$1,566 = \$[/tex]16,779.50
\]
Next, we calculate the effective tax rate by dividing the total tax by the taxable income and multiplying by 100 to express it as a percentage:
[tex]\[
\text{Effective Tax Rate} = \left(\frac{\$16,779.50}{\$95,600}\right) \times 100
\][/tex]
[tex]\[
\text{Effective Tax Rate} \approx 17.55\%
\][/tex]
Hence, the effective tax rate for a taxable income of \$95,600, rounded to the nearest hundredth, is:
[tex]\[
\boxed{17.55\%}
\][/tex]
