Question

state income tax rates
taxable income\ttax rate
up to $20,000\t2%
next $20,000\t4%
over $40,000\t6%
true or false: if you are single and make $18,000 and the state allows a $2,000 exemption for each person in your household, the amount of your annual state income tax is $320.
true
false

Explanation:

Step1: Calculate taxable income

First, we need to find the taxable income. The total income is $18,000 and there is a $2,000 exemption. So taxable income = $18,000 - $2,000 = $16,000.

Step2: Determine tax rate and calculate tax

The taxable income of $16,000 is in the "Up to $20,000" bracket with a tax rate of 2%. So the tax is calculated as 2% of $16,000.
Tax = $16,000 × 0.02 = $320.

Answer:

True