Suppose in Fiscalville there is no tax on the first $10,000 of income, but there is a 20 percent tax on earnings between $10,000 and $20,000 and a 30 percent tax on income between $20,000 and $30,000. Any income above $30,000 is taxed at 40 percent. If your income is $50,000, how much will you pay in taxes? $ 20000 Determine your marginal and average tax rates: The marginal tax rate is The average tax rate is Is this a progressive tax? %. %. No. This tax rate is not a progressive tax. Yes. This tax rate is progressive because the average tax rate will increase with income.