Question

The nation of Fishkasar has a tax rate of 5% on the first 20,000 wallops (the national currency) fo taxable income, then 20% on the next 30,000 wallops, then 50% on all taxable income above the 50,000 wallops. Fishkasar provides a 5,000-walop exemption per family member.

a)Jamil's family has three members and earns 60,000 wallops per year. Calculate the family's marginal and average tax rates.

Answer 1

data derived from the question

slab	tax rate
0-20000	5%
21000-50000	20%
51000 and above	50%
per family menber excemption	5000

income tax calculation with the explanation and formula

		Formula used and explanation
Jamil's income	$60,000.00
exemption under family member	$45,000.00	(60000-15000)
5% tax rate	$1,000.00	(5% of 20000) first tax slab
20% tax rate	$5,000.00	(20% of 25000) second tax slab
total tax	$6,000.00
average tax rate for jamil	10.00%	(total tax paid / jamil's income