Exam ple: Marginal Ve rsus Averag e Rates Suppose you are single and your personal taxable income is 100,000 What is your tax bill? What is the average tax rate? What is the marginal rate?

To calculate your tax bill, we need to know the tax brackets and rates for the given year. Let's assume we are in the United States for the tax year 2023. The federal income tax brackets for a single filer are as follows:- 10% on income up to 11,001 to 44,726 to 95,376 to 11,001 to 33,725 = \ 44,726 to 50,650 = \ 95,376 to 1,111.36 \]Now, sum up all the amounts: 4,047 + \ 1,111.36 = \ 17,401.36**.Next, let's calculate the average tax rate: 100, 100\% = 17.40\%\]So, your average tax rate is **17.40%**.Finally, let's determine the marginal rate:The marginal rate is the rate at which the last dollar of your income is taxed. Since your last dollar falls within the 24% bracket, your marginal rate is **24%**.To summarize:- Your tax bill is **$17,401.36**.- Your average tax rate is **17.40%**.- Your marginal rate is **24%**.