To calculate the state income tax on a [tex]$60,000 per year salary using the given progressive tax rates, we need to apply the tax rates to the different segments of the income as specified by the tax brackets. Here is a detailed step-by-step breakdown of the calculations:
1. Calculate tax for the $[/tex]0 - 25,000[tex]$ bracket:
- Tax rate: 2%
- Income in this bracket: $[/tex]25,000
- Tax: [tex]\( 25,000 \times 0.02 = 500 \)[/tex]
2. Calculate tax for the [tex]$25,001 - 39,000$[/tex] bracket:
- Tax rate: 4%
- Income in this bracket: [tex]$39,000 - $[/tex]25,000 = [tex]$14,000
- Tax: \( 14,000 \times 0.04 = 560 \)
3. Calculate tax for the $[/tex]39,001+ bracket:
- Tax rate: 6%
- Income in this bracket: [tex]$60,000 - $[/tex]39,000 = [tex]$21,000
- Tax: \( 21,000 \times 0.06 = 1,260 \)
4. Sum up the taxes from all brackets:
- Tax from $[/tex]0 - 25,000[tex]$ bracket: $[/tex]500
- Tax from [tex]$25,001 - 39,000$[/tex] bracket: [tex]$560
- Tax from $[/tex]39,001+ bracket: [tex]$1,260
- Total tax: \( 500 + 560 + 1,260 = 2,320 \)
Thus, the state income tax owed on a $[/tex]60,000 per year salary is $2,319.9.
