Question

The Williams household’s annual income is $296000. Based on the U.S. federal tax rates below, what is the average tax rate for the Williams household? (Assume zero tax deductions for solving this problem.)

Answer 1

Answer and Explanation:

Since the question is asking for 'average tax rate' for Williams household, therefore, the tax rates are as follows:

$0 - $8,700 = 0.10

$8,700 - $35,350 = 0.15

$35,35 - $85,650 = 0.25

$85,650 - $178,650 = 0.28

$178,650 - $388,350 = 0.33

+ _____

1.11 = 1.11/5 = 0.222 or 22.2 % = Answer