Question

Derrick is a teacher. He earns $49,500 a year and is single. The state income tax rate is 5% of taxable income. What amount is withheld yearly for state income tax?

Answer 1

Derrick would have $2,475 withheld annually for state income tax, calculated by multiplying his annual salary of $49,500 by the state income tax rate of 5%.

Step-by-step explanation:

In order to determine the amount withheld yearly for state income tax for Derrick, who is a teacher earning $49,500 a year, we need to apply the state income tax rate to his taxable income. Since the state income tax rate is fixed at 5%, we can calculate his annual tax withholding by multiplying his annual salary by the tax rate.

To find the yearly state income tax withheld we use the formula:

Tax withholding = Taxable income × State income tax rate

Therefore:

Tax withholding = $49,500 × 0.05

Tax withholding = $2,475

Accordingly, Derrick would have an amount of $2,475 withheld annually for state income tax.