Method 1 calculates the tax as a base amount for the wage bracket, plus a percentage of the excess over the base amount.
The following table provides a sample tax method. This table is not intended for use in calculating your taxes.
Example
| Taxable income is...
|
Computed tax is...
|
| Over
|
But not over
|
% of taxable amount over...
|
Plus
|
|
Taxable income is...
|
Computed Tax is...
|
|
| $0
|
$4,394
|
1.0%
|
= $0
|
+ $0.00
|
| $4,394
|
$10,414
|
2.0%
|
= $4,394
|
+ $43.94
|
| $10,414
|
$16,435
|
4.0%
|
= $10,414
|
+ $164.34
|
| $16,435
|
$22,816
|
6.0%
|
= $16,435
|
+ $405.18
|
| $22,816
|
$28,835
|
8.0%
|
= $22,816
|
+ $788.04
|
| $28,835
|
$100,000
|
9.3%
|
= $28,835
|
+ $1,269.56
|
| $100,000
|
$200,000
|
10.0%
|
= $100,000
|
+ $7,887.91
|
| $200,000
|
and over
|
11.0%
|
= $200,000
|
+ $17,887.91
|