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 Jen and Jim.

Jen’s Tax Scenario

Jen is a young professional who lives in downtown St. Louis. She has taxable income of $95,235 as an advertising account executive for Fitcom Corporation.

What is Jen’s tax liability? _____$

What is Jen’s top marginal tax rate? _____%

What is Jen's average tax rate? _____%

Jim’s Tax Scenario

Jim is a young professional who lives in downtown Chicago. He has taxable income of $62,500 as a medical sales rep for Diusitech Inc.

What is Jim’s tax liability? _____$

What is Jim’s top marginal tax rate? _____%

What is Jim's average tax rate? _____%