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You have a $45,500 annual gross income and exemptions totaling $3,000. If the state tax is 1.5% on the first $2,500 and 3% on amounts over $2,500, what is your annual income tax obligation?

Respuesta :

Total annual gross income = $45500

Total exemptions = $3000

So, total taxable income = [tex]45500-3000=42500[/tex]

For an amount up to $2500, rate of interest = 1.5%

So , [tex]\frac{1.5}{100}\times2500[/tex] = 37.50

For amount above $2500, rate of interest is = 3%

Hence, amount to be calculated on 3% is [tex]42500-2500=40000[/tex]

So 3% of 40000 = [tex]\frac{3}{100}\times40000[/tex] =1200

Hence, total tax becomes = [tex]1200+37.50[/tex] = 1237.50

Hence annual tax is $1237.50