Bill Bushman has a taxable income of $105 000. What is Bill's tax bill?

What is his average tax rate? His marginal tax rate?

From Table 2.3, the tax for the first $18 200 is zero; tax for the next $18 800

($18 200 to $37 000) is 19%; tax for the next $53 000 (Taxable income

($)37 000 to $90 000) is 32.5%; and the rate applied after that up to

$106 000 is 37%. So Bill Bushman must pay $18 800 × 0.19 + $53 000 × 

0.325 + $16 000 × 0.37 = $26 717.