Taxable income (annual): $45,300
Fed. income tax: $5,345.40
You want to find the net federal income tax rate (which is a percentage)
Therefore, you find out $5,345.40 is what percent of $45,300 (put this as an equation, with x being on the taxable income side, so:
5,345.40 = 45,300x
Divide 45,300 by both sides, so the right side cancels out and:
[tex]\frac{5,345.40}{45,300} = x[/tex]
5,345.40 ÷ 45,300 = 0.118
Convert 0.118 into a percentage (multiply it by 100)
0.118 x 100 = 11.8%
The net federal income tax rate is 11.8%
Answer:C. 11.8%
Andrew earns $45,300 in taxable income annually, and pays federal income taxes of $5,345.40. What is Andrew’s net federal income tax rate?
a.
8.47%
b.
15.1%
c.
11.8%
d.
9.1%
just took test
