To determine the state income tax owed on a [tex]$50,000 per year salary, we will apply the progressive tax rates specified for each income range. Here's the detailed step-by-step calculation:
1. Income Range $[/tex]0-26,000: 1% Tax Rate
- For the first [tex]$26,000, the tax rate is 1%.
- Tax for this range: \(26,000 \times 0.01 = 260\)
2. Income Range $[/tex]26,001-46,000: 3% Tax Rate
- For the next [tex]$20,000 (from $[/tex]26,001 to [tex]$46,000), the tax rate is 3%.
- Tax for this range: \(20,000 \times 0.03 = 600\)
3. Income Range $[/tex]46,001+: 4% Tax Rate
- The remaining income above [tex]$46,000 is $[/tex]4,000 ([tex]$50,000 - $[/tex]46,000).
- Tax for this range: [tex]\(4,000 \times 0.04 = 160\)[/tex]
4. Total Tax Calculation
- Add the taxes calculated for each range:
[tex]\[
\text{Total Tax} = 260 + 600 + 160 = 1020
\][/tex]
Therefore, the state income tax owed on a [tex]$50,000 per year salary is $[/tex]1,020.
