Question

a country's income tax system it allows 8000 to be tax free . her income from 8000 to 20000 is 15% , her income from 20000 to 40000 is 30% and the income above 40000 is 50% . the income she earns is 54000 . calculate her taxable income

Answer 1

$$Solution$$

This is a progressive type of tax, which is usually segmented into tax brackets that progress to successively higher rates. Therefore the taxable income can be calculated as below