Income Tax

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What is gross income?

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Gross income is the total income earned by an individual before any deductions or taxes are taken out.

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What are deductions in income tax?

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Deductions are amounts that can be subtracted from gross income to reduce the taxable income, such as expenses or allowances.

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How do you calculate net pay?

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Net pay is calculated by subtracting deductions from gross income. Formula: Net Pay = Gross Income - Deductions.

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What is the income tax rate?

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The income tax rate is the percentage at which an individual’s income is taxed by the government.

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How do you calculate income tax owed?

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Income tax owed is calculated by multiplying the taxable income by the income tax rate. Formula: Income Tax = Taxable Income x Tax Rate.

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If David's gross income is $127.25 and his deductions are $25.20, what is his net pay?

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$102.05

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If Peter earns $112,000 and pays 25% in income tax, how much tax does he pay?

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$28,000

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If Vickie makes $40,000 and pays 20% in income tax, how much tax does she pay?

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$8,000

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If your gross pay is $525.50 and your net pay is $446.75, how much was deducted?

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$78.75

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If Mr. Ronaldo earns $54,800 and his income tax rate is 9%, how much tax does he pay?

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$4,932