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Example: 9 Average Tax Rate Given this tax table, what is the average tax rate for a firm with taxable income of $160.000? Taxable income 0- 50,000 50,001- 75,000 76,001 - 100,000 100,001 - 335,000 Tax Rate 15% 25% 34% 39% Example: 10 Marginal Tax Rate The marginal tax rate for a firm with taxable income of $287,914 is 39%. The marginal tax rate is the rate that applies to the next dollar of taxable income earned. Taxable income Tax Rate 0 50,000 15% 50,001 75,000 25% 75,001 - 100,000 34% 100,001 - 335,000 39%