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.

Question

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.