Hollys gross pay after two weeks is $1475. Her income after taxes is $1321.60. What’s her income tax rate to the nearest tenth

1 answer

To find Holly's income tax rate, we can use the gross pay and the income after taxes.

  1. First, we need to determine how much tax Holly paid. We can do this by subtracting her income after taxes from her gross pay:

\[ \text{Tax paid} = \text{Gross pay} - \text{Income after taxes} \]

\[ \text{Tax paid} = 1475 - 1321.60 = 153.40 \]

  1. Next, we can calculate the tax rate by dividing the tax paid by the gross pay and then multiplying by 100 to convert it to a percentage:

\[ \text{Tax rate} = \left( \frac{\text{Tax paid}}{\text{Gross pay}} \right) \times 100 \]

\[ \text{Tax rate} = \left( \frac{153.40}{1475} \right) \times 100 \]

\[ \text{Tax rate} \approx 10.4% \]

Thus, Holly's income tax rate is approximately 10.4% to the nearest tenth.