Page 55 - Calculating Agriculture Cover 20191124 STUDENT - A

CH 4] Calculating Agriculture 4-17

Example A: What is the tax on a taxpayer when their taxable income is $62,000; and
calculate the effective tax rate.

Solutions: Use the chart below for Individual tax rate.

An individual who earns $62,000 will be taxed as follows:
[10% x first $9,325] = [0.10 x first $9,325] = $932.50 +
[15% x ($37,950 - $9,326)] = [0.15 x ($28,624)] = $4,293.60 +
[25% x ($62,000 – $37,951)] = [0.25 x ($24,049)] = $6,012.25
Total Tax $11,238.35

Effective Tax Rate: Total Tax / Taxable Income x 100%

Total Tax $11,238.35
x 100% = x 100% = 18.13%
Taxable Income $62,000

Figure 4.2 ≤ Less than or equal to:
Individual Tax Rates. In mathematics, is a
This chart reflects both marginal and progressive tax rates. statement that an
Tax rate on individuals taxable income. 4
inequality holds between
two values. It is usually
Annual Income Tax Rate written in the form of a
pair of expressions
≤ $9,325 10% denoting the values in
question, with a relational > Greater than: The
$9,326 to $37,950 15% sign between them greater-than sign is a
indicating the specific mathematical symbol that
$37,951 TO $91,900 25% inequality relation. In this denotes an inequality
example ≤ is used. between two values. ... In
$91,901 TO $191,650 28%
typical mathematical
$191,651 TO $416,700 33% usage, the greater-than
sign is typically placed
$416,701 TO $418,400 35% between the two values
being compared and
> $418,400 39.6% signals that the first
number is greater than

I’m glad I learned about
parallelograms in High School

math instead of how to do my
taxes. It comes in so handy
during parallelogram season.

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