A married couple has taxable income of $83,125.Determine their marginal tax rate and their average tax rate.(Round your answers to 2 decimal places)

Marginal Tax Rate

The rate at which the last dollar of a taxpayer's income is taxed, indicative of their highest tax bracket.

Average Tax Rate

The proportion of total income paid in taxes, calculated by dividing the total amount of taxes paid by total income.

Describe essential tax principles, including the characteristics of proportional and regressive tax structures, as well as the difference between marginal and average tax rates.
Employ tax law proficiency to ascertain tax liabilities and determine taxable income in diverse scenarios.

Verified Answer

Final Answer :

Their marginal tax rate is 25%.Their average tax rate is 14.75%.

Learning Objectives

Describe essential tax principles, including the characteristics of proportional and regressive tax structures, as well as the difference between marginal and average tax rates.
Employ tax law proficiency to ascertain tax liabilities and determine taxable income in diverse scenarios.