Question

arthur’s yearly taxable income totals $116,600, and he pays $30,910.66 in federal income tax every year. approximately what is arthur’s net federal income tax rate?
a. 20.5%
b. 12.7%
c. 37.7%
d. 26.5%
please select the best answer from the choices provided
a
b
c
d

Explanation:

Step1: Recall tax rate formula

The formula for tax rate is $\text{Tax Rate} = \frac{\text{Tax Paid}}{\text{Taxable Income}} \times 100\%$.

Step2: Substitute values

Here, Tax Paid = $\$30,910.66$ and Taxable Income = $\$116,600$. So, $\text{Tax Rate} = \frac{30910.66}{116600} \times 100\%$.

Step3: Calculate the division

First, calculate $\frac{30910.66}{116600} \approx 0.265$.

Step4: Convert to percentage

Multiply by 100%: $0.265 \times 100\% = 26.5\%$.

Answer:

d. 26.5%