15
QuizMultiple Choice

Personal Income and Property Taxes

Question 15 • Financial Math - MA2007

Agnes pays state income tax equal to 3.75% of her federal taxable income. She pays federal income tax equal to 28.4% of her federal taxable income. This year, she paid $15,449.60 in federal income tax. How much did Agnes pay in state income tax?

Answer
A
$573.36
B
$4,387.69
C
$1,170.04
D
$2,040.00

Explanation

First find Agnes’s federal taxable income: $15,449.60 ÷ 0.284 = $54,400. Her state income tax is 3.75% of that amount, so $54,400 × 0.0375 = $2,040. Agnes paid $2,040.00 in state income tax.

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