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Calculate the monthly personal tax for two workers with salaries of 260,000 RWF and 150,000 RWF, using progressive tax brackets: 0% on income up to 60,000 RWF, 10% on income from 60,001 to 100,000 RWF

Economics

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To determine the total monthly personal tax for each worker, we will use the progressive tax brackets implied by your work:

  • 0% for income from 0 RWF to 60,000 RWF
  • 10% for income from 60,001 RWF to 100,000 RWF
  • 20% for income above 100,000 RWF

Here are the calculations for each worker:

1. Akimana (Salary: 260,000 RWF)

  1. Calculate tax for the first bracket (0% on 60,000 RWF).

    Tax1=(60,000−0)×0%=0 RWF\text{Tax}_1 = (60,000 - 0) \times 0\% = 0 \text{ RWF}

  2. Calculate tax for the second bracket (10% on income from 60,001 to 100,000 RWF).

    Tax2=(100,000−60,000)×10%=40,000×0.10=4,000 RWF\text{Tax}_2 = (100,000 - 60,000) \times 10\% = 40,000 \times 0.10 = 4,000 \text{ RWF}

  3. Calculate tax for the third bracket (20% on income above 100,000 RWF).

    Tax3=(260,000−100,000)×20%=160,000×0.20=32,000 RWF\text{Tax}_3 = (260,000 - 100,000) \times 20\% = 160,000 \times 0.20 = 32,000 \text{ RWF}

  4. Sum the taxes from all brackets.

    Total Tax for Akimana=0+4,000+32,000=36,000 RWF\text{Total Tax for Akimana} = 0 + 4,000 + 32,000 = \boxed{\text{36,000 RWF}}

    2. Kamaliza (Salary: 150,000 RWF)

  5. Calculate tax for the first bracket (0% on 60,000 RWF).

    Tax1=(60,000−0)×0%=0 RWF\text{Tax}_1 = (60,000 - 0) \times 0\% = 0 \text{ RWF}

  6. Calculate tax for the second bracket (10% on income from 60,001 to 100,000 RWF).

    Tax2=(100,000−60,000)×10%=40,000×0.10=4,000 RWF\text{Tax}_2 = (100,000 - 60,000) \times 10\% = 40,000 \times 0.10 = 4,000 \text{ RWF}

  7. Calculate tax for the third bracket (20% on income above 100,000 RWF).

    Tax3=(150,000−100,000)×20%=50,000×0.20=10,000 RWF\text{Tax}_3 = (150,000 - 100,000) \times 20\% = 50,000 \times 0.20 = 10,000 \text{ RWF}

  8. Sum the taxes from all brackets.

    Total Tax for Kamaliza=0+4,000+10,000=14,000 RWF\text{Total Tax for Kamaliza} = 0 + 4,000 + 10,000 = \boxed{\text{14,000 RWF}}

    3. Muhire (Salary: 141,000 RWF)

  9. Calculate tax for the first bracket (0% on 60,000 RWF).

    Tax1=(60,000−0)×0%=0 RWF\text{Tax}_1 = (60,000 - 0) \times 0\% = 0 \text{ RWF}

  10. Calculate tax for the second bracket (10% on income from 60,001 to 100,000 RWF).

    Tax2=(100,000−60,000)×10%=40,000×0.10=4,000 RWF\text{Tax}_2 = (100,000 - 60,000) \times 10\% = 40,000 \times 0.10 = 4,000 \text{ RWF}

  11. Calculate tax for the third bracket (20% on income above 100,000 RWF).

    Tax3=(141,000−100,000)×20%=41,000×0.20=8,200 RWF\text{Tax}_3 = (141,000 - 100,000) \times 20\% = 41,000 \times 0.20 = 8,200 \text{ RWF}

  12. Sum the taxes from all brackets.

    Total Tax for Muhire=0+4,000+8,200=12,200 RWF\text{Total Tax for Muhire} = 0 + 4,000 + 8,200 = \boxed{\text{12,200 RWF}}

    4. Neikur (Salary: 300,000 RWF)

  13. Calculate tax for the first bracket (0% on 60,000 RWF).

    Tax1=(60,000−0)×0%=0 RWF\text{Tax}_1 = (60,000 - 0) \times 0\% = 0 \text{ RWF}

  14. Calculate tax for the second bracket (10% on income from 60,001 to 100,000 RWF).

    Tax2=(100,000−60,000)×10%=40,000×0.10=4,000 RWF\text{Tax}_2 = (100,000 - 60,000) \times 10\% = 40,000 \times 0.10 = 4,000 \text{ RWF}

  15. Calculate tax for the third bracket (20% on income above 100,000 RWF).

    Tax3=(300,000−100,000)×20%=200,000×0.20=40,000 RWF\text{Tax}_3 = (300,000 - 100,000) \times 20\% = 200,000 \times 0.20 = 40,000 \text{ RWF}

  16. Sum the taxes from all brackets.

    Total Tax for Neikur=0+4,000+40,000=44,000 RWF\text{Total Tax for Neikur} = 0 + 4,000 + 40,000 = \boxed{\text{44,000 RWF}}
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