Question

School taxes for a local district are 2.5% of a household's income. The Smith household earns $80,000 per year. How much do the Smiths pay in school taxes per year?

Answer 1

10% of $80,000 is $8,000

5% is $4,000

2.5% is $2,000

So they pay $2,500 in school taxes per year

Answer 2

$80,000*.025 = $2,000 in tax revenue