Question

Calculate the state income tax owned on a 40,000 per year salary

Answer 1

The state income tax owned on a 40,000 per year salary to the nearest whole dollar is $2,043.

First of all, we would subtract the minimum (lowest) income from the maximum (highest) income in order to determine the required income range;

3,000 - 0 = $3,000

5,000 - 3,001 ≈ $3,000

17,000 - 5001 ≈ $12,000

40,000 - 17001 ≈ $23,000

Next, we would calculate the tax rate for each bracket based on the income as follows;

State income tax (0 - 3000) = 2/100 × 3000

State income tax (0 - 3000) = $60.

State income tax (3001 - 5000) = 3/100 × 2000

State income tax (3001 - 5000) = $60.

State income tax (5001 - 17000) = 5/100 × 12000

State income tax (5001 - 17000) = $600.

State income tax (17001 - 40,000) = 5.75/100 × 23000

State income tax (17001 - 40,000) = $1,322.5.

Now, we would add all of the state income taxes as follows;

State income tax = 60 + 60 + 600 + 1,322.5

State income tax = 2,042.5 ≈ $2,043.

Answer 2

The state income tax to be paid will be $ 2,300.

Explanation:

Given that an annual salary of $ 40,000 pays a state income tax of 5.75% of said value, to determine the total amount of tax to be paid, the following calculation must be made:

40,000 x 5.75 / 100 = X

230,000 / 100 = X

2,300 = X

Therefore, the state income tax to be paid will be $ 2,300.