Question

A family has $98,150 of taxable income. The top tax rate on the graph is for taxable income over $91,150. What is the percent tax rate for the $7,000 they earned over $91,150 ?

(1 point)
Responses

10
10

15
15

25
25

28

Answer 1

To determine the tax rate for the income earned over $91,150, we need to refer to the tax brackets applicable at that income level.

Given that the taxable income is $98,150, this implies the family has $7,000 of income over $91,150.

If the top tax rate on the graph is applicable to income over $91,150, and if we assume that the top rate falls into one of the bracket percentages provided (10%, 15%, 25%, 28%), we need to inspect which rate corresponds to that portion.

Generally, in a progressive tax system, earnings above certain thresholds are taxed at higher rates. However, without the explicit tax brackets from the graph, we have to discern the rate based on the common U.S. tax brackets from that income range.

Typically, for a taxable income of $98,150, the higher brackets would suggest a tax rate of 25% or 28% would apply to earnings above $91,150.

If we consider standard U.S. tax brackets, the likely applicable tax rate for the $7,000 income earned over $91,150 would be 28%.

So, the answer is **28%**.