Karl Dieter earns $24,862 per year. He is paid 24 times per year and claims 5 exemptions. If $39.99 is withheld from each paycheck, at what rate is he taxed?

Tax Rate = 24*39.99*100%/24,862 = 3.86 %

sorry henry but your wrong....

To determine the tax rate for Karl Dieter, we need to calculate his annual income after exemptions and deductions, and then divide the total tax withheld by that amount.

First, let's calculate his net annual income after exemptions and deductions.

The annual income before any deductions or exemptions is $24,862 per year. Since he is paid 24 times per year, we can calculate his gross pay per paycheck by dividing his annual income by the number of paychecks:

$24,862 / 24 = $1,035.92 (approx.)

Next, we need to consider the deductions. $39.99 is withheld from each paycheck, so we can calculate the total deductions for the year:

$39.99 * 24 = $959.76 (approx.)

Now, we can subtract the total deductions from the gross pay to find the net annual income:

$24,862 - $959.76 = $23,902.24 (approx.)

Now that we have Karl Dieter's net annual income after deductions and exemptions, we can calculate the tax rate.

The tax rate is the percentage of income that is withheld for taxes. To find this rate, we divide the total tax withheld (which is $959.76) by the net annual income:

Tax rate = (Total tax withheld / Net annual income) * 100
= ($959.76 / $23,902.24) * 100
≈ 4.02%

Therefore, Karl Dieter is taxed at a rate of approximately 4.02%.