Calculating tax liabilities

Calculating Taxable Income

Taxable income	Rate
$1 $9,075	10.0%
$9,076 $36,900	15.0%
$36,901 $89,350	25.0%
$89,351 $186,350	28.0%
$186,351 $405,100	33.0%
$405,101 $406,750	35.0%
Over $406,751	39.6%

Using the previous tax table, compute the tax liability for each individual in the scenarios presented, rounding the liability to the nearest dollar. In addition, use the dropdown lists to identify the marginal tax rate and average tax rate for both Chloe and Clark.

Chloes Tax Scenario

Chloe is a young professional who lives in downtown San Francisco. She has taxable income of $94,235 as an advertising account executive for Charles Underwood Agency Inc.

1) What is Chloes tax liability?

What is Chloes top marginal tax rate?

What is Chloe's average tax rate?

Clarks Tax Scenario

Clark is a young professional who lives in downtown Seattle. He has taxable income of $62,000 as a medical sales rep for Frasier-dool Inc.

2)What is Clarks tax liability?

What is Clarks top marginal tax rate?

What is Clark's average tax rate?