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A couple is married and filing jointly. They have an Gross income of $158,000 and qualify for no for AI deductions and will take the

A couple is married and filing jointly. They have an Gross income of $158,000 and qualify for no for AI deductions and will take the standardized deduction. What is their tax bill given 2021 tax brackets? What is their marginal tax rate? What is their effective tax rate?

Tax rate

Taxable income bracket

Tax owed

10%

$0 to $19,900

10% of taxable income

12%

$19,901 to $81,050

$1,990 plus 12% of the amount over $19,900

22%

$81,051 to $172,750

$9,328 plus 22% of the amount over $81,050

24%

$172,751 to $329,850

$29,502 plus 24% of the amount over $172,750

32%

$329,851 to $418,850

$67,206 plus 32% of the amount over $329,850

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