Trying to understand State Taxes?

Question

-- 2.5% on the first $2,570 of taxable income
-- 3% on taxable income between $2,571 and $5,140
-- 4% on taxable income between $5,141 and $7,710
-- 5% on taxable income between $7,711 and $10,280
-- 6% on taxable income between $10,281 and $12,850
-- 7% on taxable income of $12,851 and above.

That's the scale of South Carolina state tax. How do I interprit that?

Answer 1

You pay 2.5% on the FIRST $2570.
You pay 3.0% on every dollar between $2571 and 5140.
You pay 4.0% on every dollar between $5141 and 7710.

etc...

For example, if your taxable income was $7700, you're going to pay three different tax rates on your income. You have to figure each one seperately and then add each segment together.

(These rates should be built into the CA tax tables. You shouldn't have to figure it out on your own.)

If you use the formula given by about half the answerers here, you're going to overpay. Bostonian was the first to interpret correctly. You can check this by figuring it out for yourself and then compare to the tax tables. You should be within a dollar or two from rounding errors.

Answer 2

What's to interpret? It's all explained right there. The first $2,570 is taxed at 2.5%. Then anything from $2,571 to $5,140 is taxed at 3%, etc. Add 'em all up and you have your tax.

Answer 3

What is there to interpret?
Furthermore, you don't have to do all that math. Just look up your income in the tables in the SC Instructions.

Answer 4

Use whatever % your taxable income level falls into so, $3465 would be taxed at 3%. Hope this helps. :)

Answer 5

what ever you make as a total income just take that percentage and mulpy it with your income and there is your tax.

Answer 6

You would choose the % based on your income. 7% if equal to or higher than $12,851.

Answer 7

that took a lot of work to type all that info,,

Answer 8

geez just get turbo tax