Question 1163409: The Canada in 2019 had five federal income tax brackets, with rates of 15%, 20.5%, 26%, 29% and 33%. If you fall into the 33% bracket, that doesn’t mean that the entirety of your taxable income will be subject to a 33% tax. Instead, 33% is your top marginal tax rate.
FEDERAL TAX BRACKETS 2018 - 2019 Tax rate (%)
$46,605 or less 15
$46,605 to $93,208 20.5
$93,208 to $144,489 26
$144,489 to $205,842 29
More than $205,842 33
a) Create a Mathematical Model that represents the aforementioned information to calculate the annual income tax.
b) How much annual income tax you will have to pay if your monthly taxable income is $ 12,000.
Answer by Theo(13342)   (Show Source):
You can put this solution on YOUR website! annual taxable income formula:
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if your taxable income is:
$46,605 or less, than your tax is annual taxable income * 15%
$46,605 to $93,208, than your tax is 20.5% * (annual taxable income - $46,605) + 15% * $46,605
$93,208 to $144,489, than your tax is 26% * (annual taxable income - $93,208) + 15% * $46,605 + 20.5% * ($93,208 - $46,605)
$144,489 to $205,842, than your tax is 29% * (annual taxable income - $144,489) + 15% * $46,605 + 20.5% * ($93,208 - $46,605) + 26% * ($144,489 - $93,208)
More than $205,842, than your tax is 33% * (annual taxable income - $205,842) + 15% * $46,605 + 20.5% * ($93,208 - $46,605) + 26% * ($144,489 - $93,208) + 29% * ($205,842 - $144,489)
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the above are the mathematical formulas involved.
the tax table applies the mathematical formulas for you, so that what you see is:
if your taxable income is:
$46,605 or less, than your tax is annual taxable income * 15%
$46,605 to $93,208, than your tax is 20.5% * (annual taxable income - $46,605) + $6,990.75
$93,208 to $144,489, than your tax is 26% * (annual taxable income - $93,208) + $16,544.37
$144,489 to $205,842, than your tax is 29% * (annual taxable income - $144,489) + $29,877.43
More than $205,842, than your tax is 33% * (annual taxable income - $205,842) + $47,669.80
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if your monthly taxable income is $12,000, then your annual taxable income will be 12 * $12,000 = $144,000.
since you are in the tax bracket of $93,208 to $144,489, then your tax is 26% * ($144,000 minus $93,208) + $16,544.37 = $29,750.29
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