1. Assume you are a single individual with $200,000 in taxable income. Calculate your income taxes using the 2020 federal income tax brackets (Table 1 in Slide 2-21). What is the average tax rate? What is the marginal tax rate? Which tax rate is used for decision making?
2. .

For Single Rate Individuals, Taxable Income Over For Married Individuals Filing Joint Returns, Taxable income Over For Heads of Households, Taxable Income Over 10% $0 $0 $0 12% $9,875 $19,750 $14, 100 22% $40, 125 $80, 250 $53, 700 24% $85, 525 $171,050 $85,500 32% $ 163,300 $326,600 $ 163,300 35% $207,350 $414,700 $207,350 37% $518,400 $622,050 $518,400 Source: Internal Revenue Service