On a $50,000 salary, the state income tax owed is $2,604, calculated using progressive rates: 2% on the first $2,000, 5% on the next $7,000, and 5.4% on the remaining $41,000.
To calculate the state income tax owed on a $50,000 per year salary, we need to apply the progressive tax rates to the income ranges.
1. Income Range 1: 0 - $2,000
- Tax Rate: 2%
- Tax on this range: $2,000 * 0.02 = $40
2. Income Range 2: $2,001 - $9,000
- Tax Rate: 5%
- Taxable amount in this range: $9,000 - $2,000 = $7,000
- Tax on this range: $7,000 * 0.05 = $350
3. Income Range 3: $9,001 and above
- Tax Rate: 5.4%
- Taxable amount in this range: $50,000 - $9,000 = $41,000
- Tax on this range: $41,000 * 0.054 = $2,214
Now, sum up the taxes from each range:
Total Tax= Tax in Range 1 + Tax in Range 2 + Tax in Range 3
Total Tax = $40 + $350 + $2,214
Total Tax = $2,604
Therefore, the state income tax owed on a $50,000 per year salary is $2,604.