Certainly! To calculate the state income tax owed on a \[tex]$50,000 per year salary given the progressive tax rates, we need to break down the salary into the specified income ranges and apply the corresponding tax rates to each range.
Here are the steps to calculate the tax:
1. First Income Range: \$[/tex]0 - \[tex]$4,000
- Tax Rate: 2%
- Amount taxable in this range: The entire \$[/tex]4,000 (since it is less than \[tex]$50,000).
- Tax in this range: \( 4,000 \times 0.02 = \$[/tex]80 \)
2. Second Income Range: \[tex]$4,001 - \$[/tex]22,000
- Tax Rate: 4%
- Amount taxable in this range: \[tex]$18,000 (since \$[/tex]22,000 - \[tex]$4,000 = \$[/tex]18,000)
- Tax in this range: [tex]\( 18,000 \times 0.04 = \$720 \)[/tex]
3. Third Income Range: \[tex]$22,001+
- Tax Rate: 5%
- Amount taxable in this range: \$[/tex]28,000 (since \[tex]$50,000 - \$[/tex]22,000 = \[tex]$28,000)
- Tax in this range: \( 28,000 \times 0.05 = \$[/tex]1,400 \)
4. Total Tax Calculation:
- Sum of all taxes from each range:
[tex]\[
\text{Total Tax} = \$80 + \$720 + \$1,400 = \$2,200
\][/tex]
Therefore, the state income tax owed on a \[tex]$50,000 per year salary is \$[/tex]2,200.
