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3 votes
A certain state uses the following progressive

tax rate for calculating individual income tax:
Income
Progressive
Range ($) Tax Rate

0 - 2000 2%

2001 - 9000 5%

9001 and up 5.4%

Calculate the state income tax owed on a $70,000
per year salary.

tax = $[?]

User Memedon
by
5.6k points

1 Answer

2 votes

9514 1404 393

Answer:

$3684

Explanation:

The tax on the first $2000 is 0.02×$2000 = $40.

The tax on the next $9000 -2000 = $7000 is 0.05×$7000 = $350.

The tax on the next $70000 -9000 = $61000 is 0.054×$61000 = $3294.

Then the total tax due is $40 +350 +3294 = $3684.

The state income tax owed is $3684.

_____

Additional comment

For amounts over $9000, the tax owed can also be computed as ...

tax = (income × 0.054) - $96

which we consider to be a much simpler calculation.

User Vlad Holubiev
by
5.2k points
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