Using Excel to find the marginal tax rate can be accomplished using the VLOOKUP function. However, calculating the total tax bill is a little more difficult. Below we have shown a copy of the IRS tax table for an individual. Often, tax tables are presented in this format.

If taxable income is over --	But not over --	The tax is:
$0	$7,825	10% of the amount over $0
7,825	31,850	$782.50 plus 15% of the amount over $7,825
31,850	77,100	$4,386.25 plus 25% of the amount over $31,850
77,100	160,850	$15,698.75 plus 28% of the amount over $77,100
160,850	349,700	$39,148.75 plus 33% of the amount over $160,850
349,700		$101,469.25 plus 35% of the amount over $349,700

In reading this table, the marginal tax rate for taxable income less than $7,825 is 10%. If the taxable income is between $7,825 and $31,850, the tax bill is $782.50 plus the marginal taxes. The marginal taxes are calculated as the taxable income minus $7,825 times the marginal tax rate of 15%.

Below, we have the tax table as shown in the textbook, as well as a taxable income.

Taxable income: 1350000

The corporate income tax table currently in effect is:

Taxable income is greater than or equal to.

But less than

Tax rate

$ -

$ 50,000

15%

50,001

75,000

25%

75,001

100,000

34%

100,001

335,000

39%

335,001

10,000,000

34%

10,000,001

15,000,000

35%

15,000,001

18,333,333

38%

18,333,334

Create a tax table for corporate taxes similar to the individual tax table shown above.
For a given taxable income, what is the marginal tax rate?
For a given taxable income, what is the total tax bill?
For a given taxable income, what is the average tax rate?

35%