Tax Calculation Method 1 Wage Bracket
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 |