The state income tax owed on a $40,000 per year salary is $1,500, calculated by applying the 5% progressive tax rate to the taxable income of $30,000 and rounding to the nearest whole dollar.
To calculate the state income tax owed on a $40,000 per year salary, we need to use the progressive tax rate table provided in the image. Here are the steps to follow:
First, we need to find the income range that matches the salary. In this case, it is $10,001 - $50,000, which has a progressive tax rate of 5%.
Next, we need to subtract the lower limit of the income range from the salary. This gives us the taxable income. In this case, it is $40,000 - $10,000 = $30,000.
Then, we need to multiply the taxable income by the progressive tax rate. This gives us the state income tax owed. In this case, it is $30,000 x 0.05 = $1,500.
Finally, we need to round the answer to the nearest whole dollar amount. In this case, it is $1,500.
Therefore, the state income tax owed on a $40,000 per year salary is $1,500.