The state income tax owed on an $80,000 per year salary is approximately $60 + $60 + $600 + $3,625 = $4,345.
To calculate the state income tax owed on an $80,000 per year salary using the progressive tax rate provided, we need to follow these steps:
1. Determine the income range in which the $80,000 salary falls.
- The salary falls within the "17,001 and up" range since it exceeds $17,000.
2. Calculate the income tax owed for each income range up to the one that includes the $80,000 salary.
- For the range 0 - 3,000:
- The tax rate is 2%.
- The income in this range is $3,000.
- The tax owed for this range is $3,000 * 0.02 = $60.
- For the range 3,001 - 5,000:
- The tax rate is 3%.
- The income in this range is $5,000 - $3,001 = $1,999.
- The tax owed for this range is $1,999 * 0.03 = $59.97 (approximately $60).
- For the range 5,001 - 17,000:
- The tax rate is 5%.
- The income in this range is $17,000 - $5,001 = $11,999.
- The tax owed for this range is $11,999 * 0.05 = $599.95 (approximately $600).
3. Calculate the income tax owed for the range that includes the $80,000 salary.
- For the range 17,001 and up:
- The tax rate is 5.75%.
- The income in this range is $80,000 - $17,001 = $62,999.
- The tax owed for this range is $62,999 * 0.0575 = $3,624.95625 (approximately $3,625).