Question

A certain state uses the following progressive

tax rate for calculating individual income tax:
Income
Range ($)
Progressive
Tax Rate
2%
3%
5001 - 17,000
5%
17,001 and up
5.75%
Calculate the state income tax owed on a $60,000
per year salary.
tax = $[?]
Round your answer to the nearest whole dollar amount.
0-3000
3001 - 5000

All the app answers are wrong :(
Please help

Answer 1

• $3,193

Solution :

Range ($) : 0 - 3000

Progressive rate : 2%

Amount taxable : $(3000 - 0) = $3000

• Tax payable : 2% of $3000 = $60

Range($) : 3001 - 5000

Progressive rate : 3%

Amount taxable : $(5000 - 3001) = $1,999

• Tax payable : 3% of $1,999 = $59.97

Range ($) : 5001 - 17000

progressive rate : 5%

Amount taxable : $(17000-5001) = $12000

• Tax payable : 5% of $12000 = $600

Range ($) : 17001 ≤

Progressive rate : 5.75%

Amount taxable : $(60000 - 170000) = $43000

• Tax payable : 5.75% of $43000 = $2472.5

Hence,

• Total tax payable amount = $(60 + 59.97 + 600 + 2472.5)= $3,192.47 or $3,193

Therefore,the total state income tax owed on a $60,000 per year salary is $3,193 ( rounded off to the nearest whole dollar amount ) .

Answer 2

$3193

Explanation:

$0-$3000 2% 2% of $3000 = $60

$3001-$5000 3% 3% of $2000 = $60

$5001 - $17,000 5% 5% of $12000 = $600

$17,001 and up 5.75% 5.75% of $43000 = $2472.50

60 + 60 + 1440 + 2473 = 3193

Answer: $3193