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23 July, 07:54

A single person pays $4,800 in income taxes on a gross income of $32,000. How much would a single person be expected to pay if his gross income is $38,000?

(Assume both incomes are in the same tax bracket.)

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  1. 23 July, 09:05
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    Divide tax paid by amount made:

    4800 / 32000 = 0.15

    The tax rate is 15%

    Multiply new amount earned by tax rate:

    38,000 x 0.15 = 5700

    They would pay $5,700
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