Income Tax

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What is income tax?

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Income tax is a tax imposed by the government on individuals' earnings, calculated as a percentage of their income.

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How do you calculate income tax?

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To calculate income tax, multiply your total income by the income tax rate (as a decimal). For example, if you earn $50,000 and the tax rate is 20%, your income tax would be $50,000 x 0.20 = $10,000.

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CCSS.6.RP.A.3C

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What is gross pay?

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Gross pay is the total amount of money earned by an employee before any deductions, such as taxes or insurance.

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CCSS.7.EE.B.3

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If you earn $9.50 an hour and work 15 hours, what is your gross pay?

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$142.50

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CCSS.7.EE.B.3

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What is a deduction in terms of income?

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A deduction is an amount that is subtracted from an individual's gross pay to determine their net pay, which is the amount they take home.

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CCSS.7.RP.A.3

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What are common types of deductions from paychecks?

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Common deductions include federal income tax, state income tax, Social Security tax, Medicare tax, and health insurance premiums.

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How do you find the total deductions from a paycheck?

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To find total deductions, add up all individual deductions listed on the paycheck.

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CCSS.6.NS.B.3

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If Marco has deductions of $44 for federal tax, $23 for Social Security, $5 for Medicare, and $24 for health insurance, what is his total deduction?

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$96

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CCSS.2.NBT.B.7

CCSS.3.NBT.A.2

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What is sales tax?

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Sales tax is a tax imposed on the sale of goods and services, usually calculated as a percentage of the purchase price.

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CCSS.6.RP.A.3B

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How is sales tax applied to a purchase?

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Sales tax is added to the price of the item at the point of sale.

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CCSS.6.RP.A.3D