Final answer:
Mr. Williams will pay $970.50 in state income tax, calculated by multiplying his annual income of $32,350 by the state income tax rate of 3%.
Step-by-step explanation:
To calculate the amount Mr. Williams will pay in state income tax, we need to apply the given tax rate to his annual income. Mr. Williams earns $32,350 per year and the state income tax rate is 3%. The calculation is as follows:
$32,350 (annual income) x 0.03 (tax rate) = $970.50
Therefore, Mr. Williams will pay $970.50 in state income tax.