Tax Word Problems

Anika's Cafe made a profit of $500,000 before taxes this year. If the cafe must pay a 30% tax on profits, how much tax does Anika's Cafe owe?

• $150,000

• $200,000

• $250,000

• $175,000

Liam earns $85,000 annually and pays a total of 28% in federal and state taxes combined. What is his net annual income after taxes?

• $61,200

• $62,800

• $60,100

• $61,200

Sophia earns a gross pay of $3,500 per month from her job. After paying 20% in taxes, how much is her net pay?

• $2,800

• $2,750

• $2,950

• $2,600

Abigail, a freelance graphic designer, earns $104,000 annually. If she has to pay a 33% tax rate, what is her net annual income after tax?

• $69,680

• $70,720

• $74,800

• $66,640

If Nora's gross pay from her software development job is $2,000 per week and the total tax rate (federal, state, and local) is 30%, how much does Nora take home each week after taxes?

• $1,400

• $1,600

• $1,500

• $1,300

Avery runs a local bakery with a gross income of $250,000. If the bakery pays 28% in taxes, how much does Avery have left after taxes?

• $180,000

• $190,000

• $200,000

• $170,000

Aiden earns $55,000 per year from his job as a software developer. He pays 15% in federal taxes, 5% in state taxes, and 2% in local taxes. How much does Aiden pay in total taxes each year?

• $12,100

• $11,000

• $10,450

• $9,750

Maya receives a monthly salary of $3,500 from her job. She pays 12% in federal taxes, 6% in state taxes, and 3% in local taxes. How much is Maya's net salary after all these deductions?

• $2,625

• $2,795

• $2,975

• $2,450

Avery's Cafe had a total revenue of $600,000 this year. After paying a corporate tax rate of 21%, how much profit does Avery's Cafe have?

• $474,000

• $450,000

• $486,000

• $500,000

Maya has a gross income of $90,000 from her job. After paying 32% in combined federal and state taxes, how much is her net income?

• $61,200

• $60,800

• $62,400

• $58,500