The state income tax owed on a $30,000 per year salary is $1,524
What are the applicable tax rates?
The applicable tax rates are that the first $2,000 of taxable income is taxed at 2%, such that $9000 minus the earlier $2000, is taxed at 5% and any taxable income beyond $9,000 is taxed at 5.4%, in essence, the income tax owed by a taxpayer whose taxable income is $30,000 is computed thus:
income tax on first threshold=$2000*2%=$40
income tax on second threshold=($9000-$2000)*5%=$350
income tax on the last threshold=($30,000-$9,000)*5.4%=$1,134
total state income tax owed=$40+$350+$1,134
total state income tax owed=$1,524
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