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?
Answer
A
8.47%
B
15.1%
C
11.8%
D
9.1%
Explanation
Divide Andrew’s federal income tax by his taxable income, then multiply by 100: ($5,345.40 ÷ $45,300) × 100 = 11.8%. Therefore, the correct choice is 11.8%.
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