Question

Emmet Michaels' gross pay is $31,700. He takes a single exemption of $2,000. His state income tax rate is 4.5%. How much will he pay in state income tax?

Answer 1

Emmet Michaels will pay $1,336.50 in state income tax after applying a 4.5% tax rate to his taxable income, which is calculated by subtracting his $2,000 single exemption from his gross pay of $31,700.

Step-by-step explanation:

To calculate the state income tax that Emmet Michaels would pay, we first find his taxable income by subtracting his exemption from his gross pay. Next, we apply the state income tax rate to his taxable income.

Taxable income = Gross pay - Exemption

Taxable income = $31,700 - $2,000

Taxable income = $29,700

Now, we calculate the state income tax by applying the state income tax rate to the taxable income:

State income tax = Taxable income × State income tax rate

State income tax = $29,700 × 0.045

State income tax = $1,336.50

Therefore, Emmet Michaels will pay $1,336.50 in state income tax.