The Smith family earned $83,000 and paid $12,450 in taxes. What was the Smith family's tax rate?

Question

14%
13%
15%
12.5%

Answer 1

To find the tax rate, you can use the formula:

\[ \text{Tax Rate} = \frac{\text{Taxes Paid}}{\text{Total Income}} \times 100 \]

Substituting in the Smith family's values:

\[ \text{Tax Rate} = \frac{12,450}{83,000} \times 100 \]

Calculating that:

\[ \text{Tax Rate} = 0.1506 \times 100 \approx 15.06% \]

So the tax rate is approximately 15%.

The closest option from your list is 15%.