Question

A certain state uses the following progressivetax rate for calculating individual income tax:Income ProgressiveRange ($) Tax Rate2%0 - 20002001 - 90005%9001 and up 5.4%Calculate the state income tax owed on a $30,000per year salary.tax = $[?]

Answer 1

If certain state uses the following progressive tax rate for calculating individual income tax. The total state income tax owed is $1,524.

What is the total state income tax owed?

For the first $2,000 (2% tax rate):

Tax = $2,000 * 0.02

Tax = $40

For the income between $2,001 and $9,000 (5% tax rate):

Tax = ($9,000 - $2,000) * 0.05

Tax = $350

For the income above $9,000 (5.4% tax rate):

Tax = ($30,000 - $9,000) * 0.054

Tal = $1,134

Total state income tax owed:

Total state income tax = $40 + $350 + $1,134

Total state income tax = $1,524

Therefore the total state income tax owed is $1,524.

Answer 2

We can see that the salary range for $30,000 is the range $9001 and up.

The tax rate for this range is 5.4%.

Therefore, the state income tax owed on a $30,000 per year salary is therefore;

`(5.4)/(100)*30,000=\text{ \$1620}`

Therefore the state income tax owed is $1620.