How Tax Works
She's On The Money
00:00
How to Calculate Tax
When calculating your tax, use it as simple as say, I earn 60 K, I get taxed at 32.5% on that entire 60 K. The next amount is going to be the second tax bracket where your tax rate is 19 cents in the dollar. And then after that, you will pay $0.32 and a half cents on the rest of the money that you earn. It's kind of like a stepped tax system instead of a super strict one. We did learn about this in prep. But if anyone was going to learn about tax in school, I feel like it would have been.
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