Maribel's city imposes a tax that is 40% of the state tax she pays. Her taxable income is $198.50 per week. Her state imposes tax at a rate of 5%. How much state and local tax is withheld from her weekly pay?
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To calculate the total amount of state and local tax withheld from Maribel's weekly pay, we need to calculate both the state and local tax amounts separately and then add them up.
First, let's calculate the state tax amount. Her taxable income is $198.50 per week, and her state imposes tax at a rate of 5%. To find the state tax amount, we multiply the taxable income by the tax rate:
State tax amount = Taxable income x Tax rate
= $198.50 x 0.05
= $9.93
So, the state tax withheld from Maribel's weekly pay is $9.93.
Next, we need to calculate the local tax amount. The local tax is 40% of the state tax amount. To find the local tax, we multiply the state tax amount by 40%:
Local tax amount = State tax amount x 40/100
= $9.93 x 0.4
= $3.97
Therefore, the local tax withheld from Maribel's weekly pay is $3.97.
To find the total tax withheld, we add the state tax amount to the local tax amount:
Total tax withheld = State tax amount + Local tax amount
= $9.93 + $3.97
= $13.90
Therefore, the total state and local tax withheld from Maribel's weekly pay is $13.90.