Question

Warren Anderson's annual salary is $54,500. His personal exemptions total $1,500. The annual tax withheld is: 1.5 percent of the 1st $1,000, 3.0 percent of the next $2,000, 4.5 percent of the next $2,000, and 6.0 percent over $5,000. How much is deducted annually for state income tax?

a $3,045 b $3,450 c $2,725 d $2,565 O

Answer 1

Taxable Amount = 54,500 - 1,500

= 53,000

1st 1,000	1,000 x 1.5%	15
Next 2,000	2,000 x 3%	60
Next 2,000	2,000 x 4.5%	90
Balance	48,000 x 6%	2,880
	Total	3,045

State income tax = $3,045