What is the marginal tax rate and effective tax rate?
Since deductions and credits (and rates) seem to have an uneven effect, the rate any taxpayer pays on say the first $1 is not the same on the first $1 after $10 mill. The first $ is really not taxed at all, because the benefits, deduction are available that other one may be taxed fully, as all benefits and tax reductions have been expended. That is the marginal rate - the amount you pay on the NEXT $ you earn. The effective rate is the percent derived by taking the total tax actually paid divivded by the total income actually made. Which once again, because of different rates at different income levels, the effects of deductions, credits, maybe Net operating Loss carryforwards, etc., is really an average of everything and not a stated rate. That is the effective rate - the rate the taaxpayer actually pays, all things considered.
4 people found this useful
As marginal tax rates increase the after-tax cost of a non-deductible expense will?
" http://wiki.answers.com/Q/As marginal tax rates increase the after-tax cost of a non-deductible expense will "
What is the state tax rate in Florida?
Answer . The state of Florida has no state income tax.. If you are looking for state sales tax, the federal (universal) tax rate is 6%, then each county puts in discretionary surtax, ranges from 0% to 2.5%
Can a marginal tax rate ever be negative?
Answer . I don't think so. A marginal rate is the amount you pay on the next $ of income. As our tax brackets are progressive, and with the additional income you get no more exemptions/deductions than the previous, it would seem it would have to be positive...or at least as positive as you were before, (so if the marginal increase still means you get taxable income (from child care, or earned income credit, etc.) I guess your entire effective rate would be negative.
Can a marginal tax rate ever be 100 or more?
Answer . In the US - NO. Not even close. The marginal rate cannot be higher than the absolute statute rate. While State taxes may also enter the consideration, they are generally maxed around 9%, and are deductible on the Federal, so it would be 35% less than that or combined for @41%.. If taxable income is over-- . $0 to $7,825 10% of the amount over $0. $7,825 to $31,850 $782.50 plus 15% of the amount over 7,825. $31,850 to $77,100 $4,386.25 plus 25% of the amount over 31,850. $77,100 $160,850$15,698.75 plus 28% of the amount over 77,100. $160,850 $349,700 $39,148.75 plus 33% of the amount over 160,850. $349,700 no limit $101,469.25 plus 35% of the amount over 349,700.
Are cost of capital and marginal tax rate included on a cash flow statemnt?
Capital lease payments will affect cash flow from both operating activities and financing activities. A capital lease payment is treated as debt service. The portion of the payment applied to principal is a cash outflow from financing activities, and the portion applied to interest is a cash outflow from operating activities.
What is the tax rate for Queens County?
The tax rate for Queens county is the same as for New York City.The current rate is 8.875 percent which includes city, state andthe Metropolitan Commuter Transportation District surcharge.
What is the income tax rate in India?
Income tax slabs 2009-2010 (for Men) in India: . Income Tax Slab (in Rs.) . Tax . 0 to 1,60,000. No Tax. 1,60,001 to 3,00,000. 10%. 3,00,001 to 5,00,000. 20%. Above 5,00,000. 30%. Income tax slabs 2009-2010 (for Women) in India: . Income Tax Slab (in Rs.) . Tax . 0 to 1,90,000. No Tax. 1,90,001 to 3,00,000. 10%. 3,00,001 to 5,00,000. 20%. Above 5,00,000. 30%. Income tax slabs 2009-2010 (for Senior Citizens) in India: . Income Tax Slab (in Rs.) . Tax . 0 to 2,40,000. No Tax. 2,40,001 to 3,00,000. 10%. 3,00,001 to 5,00,000. 20%. Above 5,00,000. 30%.
What is the tax rate for Austin Texas?
Sales tax in Austin was 8.25% when this was posted. 'Sources and related links' below has the current rate.
What is the income tax rate in Georgia?
It depends on the filing status.. For 2007:. Joint or Head of Household: Tax is computed at a graduated rate and is assessed in a range from one to five percent on the first $10,000 of net taxable income (total tax on first $10,000 of net taxable income is $340) plus six percent of the excess of net taxable income over $10,000.. Single Return: One to five percent of the first $7,000 of net taxable income (total tax on the first $7,000 of net taxable income is $230) plus six percent of the excess of net taxable income over $7,000.. Married Couple Filing Separate Return: One to five percent on the first $5,000 of net taxable income (total tax on the first $5,000 of net taxable income is $170) plus six percent of the excess of net taxable income over $5,000.. http://www.etax.dor.ga.gov/taxguide/TSD_Tax_Guide_for_Georgia_Citizens_2007.pdf
What is the tax rate for 33000?
The 2013 tax rate for an income of 33,000 dollars is 15 percent.That would result in a tax bill of 4,950 dollars.
What is the marginal tax rate if you pay 25000 in taxes on an operating loss of 100000?
The question cannot be answerd.. Marginal (or effective rates for that matter), need to be based on taxable, (or perhaps in a convoluted way), book income. Certainly not on operating income, and note this is an operating loss! And not knowing anything else, the marginal rate, which is on the next level of income, we need to know if the rate changes at what level.
What is the difference between average tax rate and marginal tax rate?
Average is the total amount of tax divided by the total amount of income...it therefore includes all deductions and tax brackets, usually lower % ones, getting to the total as part of it...average.. The marginal, is on the NEXT $ of income. So it basically is going to be closer (or exactly) the highest tax rate you pay, being applicable to the last bracket your in, and generally having already used up all dedcutions available, and in fact, maybe losing some because some dedcutions drop off above certain incomes.. Clear as mud?. Marginal rate...the amount of tax pid on the NEXT $ of income...average rate includes the lower brackets and he tax, or no tax, on the first amounts of income.
What is the tax rate on a gift tax?
The general rule is: 45%, but there is much more. The U.S. Federal tax rates for gifts are on the same tax rate schedule as the estate tax. If the gift is a "present interest" gift (they can use it or benefit from it today) then each person giving the gift has, in 2009, a $13,000 exclusion from tax. Above that each person has a $1,000,000 lifetime exemption from gift tax but is required to file a gift tax return to keep track of that lifetime exemption. Gifts above that are currently being taxed at 45%.. So if you put $1,500,000 in a trust for your friends and relatives (not your spouse) and they have no rights to the trust for awhile and you have never gifted over the annual exclusion before, the first $1,000,000 is not taxed and the $500,000 is taxed at 45%. The person giving the gift pays the tax.. As with all tax law there are other circumstances that can make the general rule different than stated above. For instance, you can force the recipient to pay the tax.
Does the after tax cost of a deductible expense increase or decrease as the taxpayer's marginal income tax rate increases?
Decrease The higher the marginal rate, the more a person or firm is shielded from expenses.
What is the sales tax rate in Tennesee?
Tennessee's state rate at the time of this post is 7% but counties and cities apply additional taxes. Look in the 'Sources and related links' below to find the latest Tennessee sales tax rates by city.
How can you derive the tax rate multiplier?
Taxation Multiplier = - (MPC) / (1 - MPS) Where, MPC = marginal propensity to consume, and MPS = marginal propensity to save.
With this tax the tax rate decrease as the tax base increases?
A regressive tax is a tax imposed in such a manner that the tax rate decreases as the amount subject to taxation increases.
What is the tax rate on settlement?
Very little if any. The majority of a settlement will not be taxed. Smaller items such as punitive court fees and accrued interest on the settlement amount can be, however. The law article below discuses settlement taxation in more detail.
What is the sale tax rate in India?
The tax system in India is categorized as moderate. The top rate for the individual tax category is 30%, however because of a surcharge, the tax rate comes to 33%. Corporate income tax, comes higher than many other countries, with the highest rates hitting 30% also including the 10% surcharge totaling 33%. Besides these main taxes , there are also other taxes in india such as dividend tax, property tax and taxes on insurance contracts.
What is the difference between rates and taxes?
This would depend on how the words are used. The federal income tax marginal tax rates (brackets) would be the percentage amount that is applied to each bracket amount of income for that filing status. The bracket percentage amount go from -0- percent to the maximum 35% for the 2009 tax year income. Taxes Income tax liability would be the amount of taxes that is owed on your taxable income at your marginal tax rates after your income tax return is completed correctly for the year.
What are the current tax rates?
The rates go from 10% through the maximum 35% in 6 bracket amounts for each different filing status. Go to the IRS.gov web site and use the search box for 1040ES The tax brackets for 2010 will be on page 8 of the 1040ES. Click on the below Related Link
What is the marginal tax rate on a lump-sum tax?
The maximum tax bracket or schedule amount would be at 35%. Go to the IRS.gov web site and use the search box for 2009 federal tax rate schedules go to page 13 Click on the below Related Link
The lowest marginal tax rate applied to corporations is?
From form 1120 instructions schedule J line 1 and line 2. A qualified personal service corporation is taxed at a flat rate of 35% on taxable income. If the corporation is a qualified personal service corporation, check the box on line 2 even if the corporation has no tax liability. Line 1 If the corporation is a member of a controlled group, check the box on line 1. Complete and attach Schedule O (Form 1120), Consent Plan and Apportionment Schedule for a Controlled Group. Component members of a controlled group must use Schedule O to report the apportionment of taxable income, income tax, and certain tax benefits between the members of the group. See Schedule O and the Instructions for Schedule O for more information. TAX RATE SCHEDULE If taxable income (line 30, Form 1120) on page 1 is: . Over- . But not over- . Tax is: . Of the amount over- . $0. $50,000. 15% . $0. 50,000. 75,000. $ 7,500 + 25% . 50,000. 75,000. 100,000. 13,750 + 34% . 75,000. 100,000. 335,000. 22,250 + 39% . 100,000. 335,000. 10,000,000. 113,900 + 34% . 335,000. 10,000,000. 15,000,000. 3,400,000 + 35% . 10,000,000. 15,000,000. 18,333,333. 5,150,000 + 38% . 15,000,000. 18,333,333. - - - - -. 35% . 0. Go to the IRS.gov web site and use the search box for FORM 1120 Click on the below Related Link
Why the Effective Tax Rate can be different from the standard rate?
For federal and state income tax purpose because of any adjustments, deduction's, exemptions, nonrefundable tax credits, refundable tax credit, additions to tax, etc. before you arrive at the Effective tax rate.
What is the rate of tax for partnership firm?
A partnership computes its income and files its return in the same manner as an individual. However, certain deductions are not allowed to the partnership. Go to the IRS.gov website and use the search box for Tax Information For Partnerships Partnership Income or Loss
What is the income tax rate in Minnesota?
State of Minnesota Personal Income Taxes. Tax Rate Range : Low - 5.35%; High - 7.85%
How does an increase in income tax rate effect the breakeven point?
No, an increase in the tax rate only affects a positive income; at break even there is no amount to tax
What is tax rate on 401 k?
The taxable amount of the distribution is added to all of your other gross income and taxed at your marginal tax rate. The tax rate schedule for the marginal tax rate on taxable income starts at -0- %, 10 %, 15 %. 25 %, 28 %, 33 % and goes to the 35% maximum rate for the year 2010. Your filing status will be needed for you to determine your marginal tax rates on your taxable income for the year. Go to the IRS gov web site and use the search box for 2010 1040ES go to page 8 to find the rate for your filing status on your 1040 income tax return.
What is the service tax slab rate?
Service tax is a tax levied on services rendered by a person and the responsibility of payment of the tax is cast on the service provider. It is an indirect tax as it can be recovered from the service receiver by the service provider in course of his business transactions. Service Tax was introduced in India in 1994 by. It was imposed on a initial set of three services in 1994 and the scope of the service tax has been expanded continuously by subsequent Finance Acts. The Finance Act, extends the levy of service tax to the whole of India, except the State of Jammu & Kashmir. The Department of Revenue in the Ministry of Finance, deals with the task of formulation of policy concerning levy and collection of Service Tax. In exercise of the powers conferred, the Central Government makes for the purpose of the assessment and collection of service tax. The Service Tax is being administered by various Central Excise Commissionerates, working under the Central Board of Excise & Customs. There are six Commissionerates located at metropolitan cities of Delhi, Mumbai, Kolkata, Chennai, Ahmedabad and Bangalore which deal exclusively with work related to Service Tax. Directorate of Service Tax at Mumbai over sees the activities at the field level for technical and policy level coordination. Registration is a requirement. A person liable to pay service tax should file an application for registration within thirty days from the date on which the service tax on particular taxable service comes into effect or within thirty days from the commencement of his activity
What is the unemployment tax rate?
Unemployment funds the state pays unemployment benefits from comes from taxes or other means the state collects from the employer r. For income taxes the unemployed person must pay, it depends on the state which collects income taxes, if any, and the Federal government which excludes the first $2400 received in benefits, but as it is taxable , it is accumulated with all other income the person receives and the rate he pays depends on the income tax bracket he is in.
What is apple inc's effective tax rate?
In the US, from 2009 to 2012, Apple paid $5.6 billion on $65 billon in Profits, making the real tax rate 8.6%....this is a main reason that Apple is so profitable, it pays very little tax to the US Treasury. It funnels its income to Ireland where the country allows it to pay virtually no income tax...from a Wall Street Journal article I read recently...
How can you find sales tax rate?
Look in 'Sources and related links' below for resources that can will help you locate a sales tax rate.
What is the sale tax rate in Massachusetts?
It was 6.25% at the time of this post. See 'Sources and related links' below for the current rate.
What are the differences between tax rates?
Total income tax as a percentage of total taxable income is the average tax rate, whereas total income tax as a percentage of total economic income is the effective tax rate.
What is Mississippi's sales tax rate?
The rate depends on the county of purchase. See 'Sources and related links' below to find the rate in your town.
What is the sales tax rate in Chicago?
At the time of this post it was 9.5%. 'Sources and related links' below has the current rate.
What is the hotel tax rate in Georgia?
In the state of Georgia, the hotel tax rate is 8%. However, this isdoes not include the hospitality or resort rate at many hotels,motels, and resorts.
What does enacted tax rate mean?
The enacted tax rate is the rate that is set by the governing body.Before a tax rate becomes enacted, the governing body usuallyproposes a rate and holds public meetings where people can speakabout the rate.
What is the sales tax rate in Alaska?
Alaska has no sales tax rate but certain cities and counties in Alaska do. See 'Sources and related links' below for more info.
What is the sales tax rate in NJ?
7% at the time of this post. 'Sources and related links' below has the current rate.
What is the tax rate in Brooklyn NY?
It was 8.875% at the time of this post. See 'Sources and related links' below for the current rate.
What is the tax rate on a gallon of gasoline?
In the US, the tax rate varies from state to state. ranging from 44.6 cents per gallon in NY to 8 cents in Alaska ( as of 2010). There is also an additional federal tax of 18.4 cents per gallon. See the related link for more information. I think some states also charge sales tax on gasoline. European countries also tax gasoline at varying rates, some much more heavily than any US state. Some oil-producing countries subsidize gas prices for citizens and in effect have a negative tax rate.
What is sc state tax rate?
South Carolina imposes the following state tax rates under the sales and use tax law: . General Sales and Use Tax Rate:. 6%. Accommodations Tax Rate: . 7%. 900 and 976 Tax Rate: . 11%. Manufactured Home. 5% + 2% for amounts over $6,0001. Maximum Tax Items: . 5% (Maximum Tax: $300.00). Sales to Persons 85 and Older:. 5%. Certain Construction Material:. 3%3. Durable Medical Equipment:. 5.5%5. In addition, the sales tax due on the sale in South Carolina to a nonresident of a motor vehicle, trailer, semitrailer, or pole trailer that is to be registered and licensed in the nonresident purchaser's state of residence is the lesser of (a) the sales tax which would be imposed on the sale in the purchaser's state of residence or (b) the tax that would be imposed under South Carolina law. No sales tax is due in South Carolina if a nonresident purchaser cannot receive a credit in his resident state for sales tax paid to South Carolina
What is the rate of professional tax in Punjab?
(SEE SECTION 3 of Punjab finance act, 1977) . Sr. No. . Class of Persons . Rate of tax per annum (Rupees) . 1 . 2 . 3 . 1. . [Companies registered under the Companies Ordinance, 1984, modarbas , mutual funds or any other bodies corporate with the paid-up capital or, as the case may be, the reserves in the preceding year-]. (i) upto rupees 5 million. 5,000/- . (ii) exceeding rupees 5 million but not exceeding rupees 50 million. 20,000/- . (iii) exceeding rupees 50 million but not exceeding rupees 100 million. 50,000/- . (iv) exceeding rupees 100 million but not exceeding rupees 200 million. 75,000/- . (v) exceeding rupees 200 million. 1,00,000/- . 2. . Persons other than companies owning factories as defined under the Factories Act, 1932 and having-. (i) employees not exceeding 10. 1,000/- . (ii) employees exceeding 10 but not exceeding 25. 2,000/- . (iii) employees exceeding 25. 5,000/- . 3. . (i) Persons other than companies owning commercial establishments having 10 or more employees-. (a) within Metropolitan and Municipal Corporations limits. 3,000/- . (b) others. 2,000/- . (ii) All other commercial establishments other than wholesalers and retailers. 1,000/- . [3-A. . Persons engaged in the import or export of goods who, during the preceding financial year, imported or exported goods of the value-. (i) exceeding Rs.1 lac but not exceeding Rs.1 million. 2,000/- . (ii) exceeding Rs.1 million but not exceeding Rs. 5 million. 3,000/- . (iii) exceeding Rs.5 million. 5,000/-] . 4. . Persons who are engaged in a profession, trade, calling or employment either wholly or partly within the Province of Punjab, who were assessed to pay income tax during the preceding financial year.. 200/- . 5. . Contractors, builders and property developers, who during the preceding financial year supplied to the Federal or the Provincial Government or a company or a factory or a commercial establishment or an autonomous or a semi autonomous organization or any Local Authority goods, commodities and services of the value-. [(i) not exceeding rupees 1 million. 500/-] . [(ii)] exceeding rupees 1 million but not exceeding rupees 10 million. 3,000/- . [(iii)] exceeding rupees 10 million but not exceeding rupees 50 million. 5,000/- . [(iv)] exceeding rupees 50 million. 10,000/- . 6. . Persons engaged in various professions and providing different services such as-. [(i) Medical consultants or specialists/dental surgeons. 1,000/- . (ii) Registered medical practitioners. 1,000/-] . (iii) Others including homoeopaths, hakeems and ayuervedics-. (a) within Metropolitan and Municipal Corporations limits. 1,000/- . (b) others. 500/- . (iv) Auditing firms (per professionally qualified person)-. (a) within Metropolitan and Municipal Corporations limits. 3,000/- . (b) others. 2,000/- . (v) Management and tax consultants architects, engineering, technical and scientific consultants-. (a) within Metropolitan and Municipal Corporations limits. 3,000/- . (b) others. 2,000/- . [(vi) Lawyers. 1,000/-] . (vii) (a) Members of Stock Exchanges. 5000/- . (b) Money changers-. (i) within Metropolitan and Municipal Corporations limits. 3,000/- . (ii) others. 1,000/- . (c) Motorcycle/Scooter dealers-. (i) within Metropolitan and Municipal Corporations limits.. 5,000/- . (ii) others. 3000/- . (d) Motor car dealers and real estate agents-. (i) within Metropolitan and Municipal Corporations limits. 10,000/- . (ii) others. 5,000/- . (e) recruiting agents-. (i) within Metropolitan and Municipal Corporations limits. 10,000/- . (ii) others. 5,000/-] . [viii)] Carriage of goods and passengers by road-. (i) within Metropolitan and Municipal Corporations limits. 2,000/- . (ii) others. 1,000/- . [(ix)] Health clubs and gymnasiums-. (i) within Metropolitan and Municipal Corporations limits. 2,000/- . (ii) others. 1,000/-] . [(x) jewelers, departmental stores, electronic goods stores, cable operators, printing presses and pesticide dealers. 1,000/-] . [(xi) Tobacco venders-. wholesalers. 2,000/-] .
What is Las Vegas's tax rate?
The Las Vegas rate can change over time but is 8.1% at the time of this post. Look in 'Sources and related links' below for the current rate.
How do you solve rate of tax?
Find the dollar amount of the sales tax by subtracting the pretax price from the post-tax price. . Divide the sales tax cost by the pretax price. . Multiply the Step 2 answer by 100 to convert the sales tax rate from a decimal to a percentage. .
What are state sales tax rates?
You should try and look it up! Maybe that will help...Google ;) There ya go!
What is the Sales Tax rate for Hawaii?
The state-wide rate is 4%. Some localities add up to 0.712 % to this rate. (According to wikipedia, see related link below.)
How do you find the tax rate if you have the pre tax and after tax profit?
After Tax Profit = Pretax Profit * (1 - Tax Rate) Solve for Tax Rate Tax Rate = 1 - (After Tax Profit/Pretax Profit)
How is the tax rate for inheritance tax determined?
it depends on the value of the property received by the beneficiaryand the relationship to the deceased.