Question

An urban planner had a taxable income of $52,950 last year. if he paid 10% of his income between $0 and $8350, 15% of his income between $8350 and $33,950, and 25% of his income between $33,950 and $52,950 in federal income tax, how much did the urban planner pay in federal income tax last year?

Answer 1

Add up the products of tax rate and applicable amount

10%×$8350 + 15%×(33950 -8350) + 25%×(52950 -33950)

= $835 + 3,840 + 4,750

= $9425

The planner paid $9,425 in taxes last year.