Calculate the Marginal Tax Rate Taxable Income and Tax Rate

Calculate the Marginal Tax Rate Taxable Income and Tax Rate $0-50,000 15% $50,000-75,000 25 75,000-100,000 34 100,000-335,000 39 335,000-10,000,000 34 10,000,000-15,000,000 35 15,000,000-18,333,333 38 18,333,333+ 35

If Brian’s Dog Kennel had $270382 in net income last year, what is the marginal tax rate for Brian\'s Dog Kennel?

Select one: a. 15% b. 34% c. 39% d. 32.81%

Solution

Marginal tax rate is the tax rate paid by earning the additional last dollar. Here, the applicable last tax slab is 39% ($100,000-$335,000) so marginal tax rate will be 39%.

Hence, correct option is (c) 39%