Subjects algebra

Income Tax

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Income Tax


1. **State the problem:** Mr Simba's monthly salary is 35000 and his wife's monthly salary is 23000. We need to find the total income tax they pay in one year based on the tax rates for income per month: - First 9000 at 0% - Next 3000 at 15% - Income in excess of 12000 at 30% Also, find the amount of income in excess of 12000 for one month. 2. **Calculate combined monthly income:** $$35000 + 23000 = 58000$$ 3. **Calculate amount in excess of 12000 per month:** $$58000 - 12000 = 46000$$ 4. **Calculate tax for each bracket per month:** - Tax on first 9000: $$9000 \times 0\% = 0$$ - Tax on next 3000: $$3000 \times 15\% = 3000 \times 0.15 = 450$$ - Tax on excess 46000: $$46000 \times 30\% = 46000 \times 0.30 = 13800$$ 5. **Total tax per month:** $$0 + 450 + 13800 = 14250$$ 6. **Calculate total tax per year:** $$14250 \times 12 = 171000$$ **Final answers:** - Amount in excess of k12000 per month: $$46000$$ - Total income tax paid in one year: $$171000$$