Question

Suppose your total taxable income this year is $75,000 you are taxed a rate of 10 percent on the first 25,000 20 percent on the next 25,000 and 30 percent on the final 25,000 what is your total income tax

Answer 1

The next $30,000 would be taxed at 20%, or $6,000. The final $25,000 of your income would be taxed at 30%, or $7,500. ... Tax brackets apply only to your taxable income—that is, your total income ...