Question

Andrew earns $45,300 in taxable income annually, and pays federal income taxes of $5,345.40. What is Andrew’s net federal income tax rate?
a.
8.47%
b.
15.1%
c.
11.8%
d.
9.1%

Answer 1

Net federal tax rate = (federal taxes paid / taxable income) × 100
= (5,345.40 / 45,300) × 100 = 11.8%

Answer: c.