Question

Freddy earns $750.00/week, he is single and has 3 dependents. He lives in a state with a tax rate of 3%. What does he pay in state income taxes every week?

Answer 1

$17.88

Explanation:

Freddy earns = $750 per week

Has 3 dependents

and he is single

Tax rate = 3%

Lets calculate Freddy's Annual Taxes and Taxable income

Freddy's Annual income = 750 *52 = $39,000

Annual Allowance for a single person = $2000

Annual allowance for 3 dependents = $2000 * 3 = $6000

Hence Freddy's Annual Taxable Income = ( 39000 - 8000 ) = $31,000

Annual withheld tax = 3% * $31,000 = $930

Therefore Freddy's weekly withheld tax = 930 / 52 = $17.88