To determine the effective tax rate for a taxable income of \[tex]$145,690 using the marginal tax rate chart, we'll follow these steps:
1. Break Down the Income Across the Brackets:
We need to calculate the tax for each portion of the income according to the tax brackets.
- The first \$[/tex]10,275 is taxed at 10%.
- The next portion from \[tex]$10,276 to \$[/tex]41,175 (which is \[tex]$30,900) is taxed at 12%.
- The next portion from \$[/tex]41,176 to \[tex]$89,075 (which is \$[/tex]47,900) is taxed at 22%.
- The next portion from \[tex]$89,076 to \$[/tex]145,690 (which is \[tex]$56,615) is taxed at 24%.
2. Calculate the Tax for Each Bracket:
- For the first bracket: \(10\% \text{ of } 10,275 = 0.10 \times 10,275 = 1,027.50\)
- For the second bracket: \(12\% \text{ of } 30,900 = 0.12 \times 30,900 = 3,708\)
- For the third bracket: \(22\% \text{ of } 47,900 = 0.22 \times 47,900 = 10,538\)
- For the fourth bracket: \(24\% \text{ of } 56,615 = 0.24 \times 56,615 = 13,587.60\)
3. Sum the Taxes for All Brackets:
Adding up all the taxes from the different brackets:
\[
1,027.50 + 3,708 + 10,538 + 13,587.60 = 28,861.10
\]
4. Calculate the Effective Tax Rate:
The effective tax rate is the total tax liability divided by the total income, multiplied by 100 to get the percentage:
\[
\text{Effective Tax Rate} = \left( \frac{28,861.10}{145,690} \right) \times 100
\]
\[
\text{Effective Tax Rate} \approx 19.81\%
\]
5. Round the Final Answer:
The effective tax rate, rounded to the nearest hundredth, is 19.81%.
Therefore, the effective tax rate for a taxable income of \$[/tex]145,690 is 19.81%. The correct option is:
[tex]\[
\boxed{19.81\%}
\][/tex]
