If provincial tax rates are 16% on the first $40,100; 20% on the next $40,100; and 24% on any income after that. If a resident had income of $102,000, then determine the total tax paid.

Question

Quizplus · Accepted Answer

The total tax paid is calculated by applying the given tax rates to the respective income brackets. For the first $40,100, the tax is 16%, which equals $6,416. For the next $40,100, the tax is 20%, which equals $8,020. For the remaining income ($102,000 - $80,200 = $21,800), the tax is 24%, which equals $5,232. Adding these amounts together gives a total tax of $19,668.

If Provincial Tax Rates Are 16% on the First $40,100;