Question

A certain state uses the progressive tax rate below for calculating individual income tax. Calculate the state income tax owed on an $40,000 per year salary.

Income Range ($)

Progressive Tax Rate

0-9,000

4%

9,001-14,000

5%

14,001+

6%

Tax = $[?]

Answer 1

To calculate the state income tax owed on a $40,000 salary using the provided progressive tax rates, we will break it down by the income ranges and apply the respective tax rates.

1. **Income from $0 to $9,000**:
- Tax Rate: 4%
- Tax Calculation: \( 9,000 \times 0.04 = 360 \)

2. **Income from $9,001 to $14,000**:
- Income in this range: \( 14,000 - 9,000 = 5,000 \)
- Tax Rate: 5%
- Tax Calculation: \( 5,000 \times 0.05 = 250 \)

3. **Income above $14,000** (for the amount from $14,001 to $40,000):
- Income in this range: \( 40,000 - 14,000 = 26,000 \)
- Tax Rate: 6%
- Tax Calculation: \( 26,000 \times 0.06 = 1,560 \)

Now, we can add up all the calculated taxes:

\[
\text{Total Tax} = 360 + 250 + 1,560 = 2,170
\]

Thus, the state income tax owed on a $40,000 per year salary is:

**Tax = $2,170**.