Question

Assume income tax is 44% and your annual salary is $29958 how many dollars do you pay in taxes? Round your answer to 2 decimal places

Answer 1

Definition

An income tax is a tax imposed on individuals or entities in respect of the income or profits earned by them. Income tax generally is computed as the product of a tax rate times the taxable income.

Given:

tax rate = 44%

Annual salary (taxable income) = $29958

The amount paid in tax is the tax rate times the annual salary i.e:

`\text{Amount paid in tax = tax rate }*\text{ annual salary}`

Substituting the given values we have:

`\begin{gathered} \text{Amount paid in tax = }(44)/(100)\text{ }*29958 \\ =\text{ 13181.52} \end{gathered}`

Answer: $13181.52