To calculate the state income tax owed on a [tex]$60,000 per year salary, we need to use the given progressive tax rates applied to different income ranges. We'll compute the tax owed for each tax bracket separately and then sum them up.
1. Income Range: $[/tex]0-[tex]$25,000
- Tax Rate: 2%
- Income in this range: $[/tex]25,000
- Tax owed for this range: [tex]\(25,000 \times 0.02 = 500\)[/tex]
2. Income Range: [tex]$25,001-$[/tex]39,000
- Tax Rate: 4%
- Income in this range: [tex]$39,000 - $[/tex]25,000 = [tex]$14,000
- Tax owed for this range: \(14,000 \times 0.04 = 560\)
3. Income Range: $[/tex]39,001+[tex]$
- Tax Rate: 6%
- Income in this range: $[/tex]60,000 - [tex]$39,000 = $[/tex]21,000
- Tax owed for this range: [tex]\(21,000 \times 0.06 = 1260\)[/tex]
Now, we sum up the taxes owed in each range to get the total tax:
[tex]\[
500 \, (\text{first range}) + 560 \, (\text{second range}) + 1260 \, (\text{third range}) = 2319.9
\][/tex]
Therefore, the state income tax owed on a [tex]$60,000 per year salary is $[/tex]2319.90.
