Answer:
15.18%
Explanation:
$63,425 falls under the 22% marginal tax rate bracket.
Which means a full range of 10% and 12% will be filled.
$63,425 will consist of $10,275 the first bracket. The amount of money taxable in the 12% bracket we have to subtract $41,175 from $10,275
$41,175 - $10,275 = $30,900
For the 22% bracket, the taxable amount can be found by subtracting your taxable income by the maximum amount of the last bracket.
$63,425 - $41,175 = $22,250
We have three values for our taxable amount:
10% : $10,275
12% : $30,900
22% : $22,250
Now we multiply each of these by their respective tax rates.
Which gives us:
$1,027.5
$3,708.0
$4895.0
Now we add these up to find the total tax owed.
Which is $9,630.5
To find the effective tax rate we divide the total tax owed by taxable income and then multiply by 100.
$9,630.5/$63,425 = 0.1518407568 * 100 = 15.18407568% ≈ 15.18%