To determine the effective tax rate for a taxable income of [tex]$63,425, we need to follow these steps:
1. Identify the applicable tax bracket: From the given piecewise function and the tax bracket chart, we see that a taxable income of $[/tex]63,425 falls in the range of [tex]$41,176 - $[/tex]89,075.
2. Calculate the tax owed:
For the tax bracket [tex]$41,176 - $[/tex]89,075[tex]$, the tax formula is:
\[
f(x) = 0.22x - 4,323.00
\]
Substituting $[/tex]x = 63,425[tex]$:
\[
f(63,425) = 0.22 \cdot 63,425 - 4,323.00
\]
\[
= 13,953.50 - 4,323.00
\]
\[
= 9,630.50
\]
So, the tax owed is $[/tex]9,630.50.
3. Calculate the effective tax rate:
The effective tax rate is calculated by dividing the tax owed by the taxable income and then multiplying by 100 to get a percentage:
[tex]\[
\text{Effective Tax Rate} = \left(\frac{\text{Tax Owed}}{\text{Taxable Income}}\right) \times 100
\][/tex]
Substituting in the values:
[tex]\[
\text{Effective Tax Rate} = \left(\frac{9,630.50}{63,425}\right) \times 100
\][/tex]
[tex]\[
= \left(\frac{9,630.50}{63,425}\right) \times 100
\][/tex]
[tex]\[
\approx 15.18\%
\][/tex]
Therefore, the effective tax rate for a taxable income of $63,425 is approximately 15.18%.
