Thread: Help on income tax question

1. Help on income tax question

A province's progressive income tax rates are structured as follows: 16% tax on the first 15,000 of taxable income , 26% on the next 20,000 , 35% on the next $40,000, and 45% on any additional taxable income. What percentage is an individual's total income tax of his ( taxable ) income if his taxble income for a year is: a)$33,000? b) $66,000 c)$ 99,000 ?

2. Originally Posted by diehardmath4
A province's progressive income tax rates are structured as follows: 16% tax on the first 15,000 of taxable income , 26% on the next 20,000 , 35% on the next $40,000, and 45% on any additional taxable income. What percentage is an individual's total income tax of his ( taxable ) income if his taxble income for a year is: a)$33,000? b) $66,000 c)$ 99,000 ?
I'll solve a) and you can use that example to tackle the other two.

16% of $15,000 = .16 X 15000 =$2,400

$33,000 -$15,000 = $18,000 26% of$18,000 = .26 X 18000 = $4,680 Total tax =$7,080

$\frac{taxes}{income}=\frac{{\color{red}7080}}{3300 0}\approx .215 \approx 21.5\%$