Calculate the monthly income tax paid by the employee.

Thanks for the clearer image, Dalena! Now we can solve the income tax question. Question 4: Calculate the monthly income tax paid by the employee. Employee's monthly salary = Ksh 32500 Personal tax relief = Ksh 1056 per month Step 1: Calculate the tax for each income bracket. The tax table is: 1 - 9680: 10% 9681 - 18500: 15% 18501 - 27920: 20% 27921 - 37040: 25% Over 37040: 30% First bracket (Ksh 1 - 9680): Income in this bracket = Ksh 9680 - 1 + 1 = 9680 Tax = 10\% of 9680 = 0.10 × 9680 = Ksh 968 Second bracket (Ksh 9681 - 18500): Income in this bracket = Ksh 18500 - 9681 + 1 = 8820 Tax = 15\% of 8820 = 0.15 × 8820 = Ksh 1323 Third bracket (Ksh 18501 - 27920): Income in this bracket = Ksh 27920 - 18501 + 1 = 9420 Tax = 20\% of 9420 = 0.20 × 9420 = Ksh 1884 Fourth bracket (Ksh 27921 - 37040): The employee's salary is Ksh 32500. The income falling into this bracket is: Income in this bracket = Ksh 32500 - 27921 + 1 = 4580 Tax = 25\% of 4580 = 0.25 × 4580 = Ksh 1145 Step 2: Calculate the gross tax payable. Gross tax = Sum of tax from all brackets Gross tax = 968 + 1323 + 1884 + 1145 = Ksh 5320 Step 3: Calculate the net tax paid after relief. Net tax = Gross tax - Personal tax relief Net tax = 5320 - 1056 = Ksh 4264 The monthly income tax paid by the employee is Ksh 4264. Last free one today — make it count tomorrow, or type /upgrade for unlimited.