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in this video we're going to talk about how to calculate income tax let's start with this example karen's taxable income was 85 000 in 2018. so using the tax income rate table that we see below how much does she pay in federal income taxes in 2018 so what do we need to do the first thing you want to do is look at the first row the first 9525 dollars that she earns she's going to pay 10 percent on that money so what is 10 percent of and twenty five 9525 to calculate ten percent of that multiply that number by point ten you can get point ten by taking ten percent and dividing it by a hundred that's how you convert a percentage into a decimal so it's 95.25 times 0.10 and so she's going to pay 952.50 on this amount but we're not done yet we need to get up to 85 000. now let's move on to the second row what we're going to do is we're going to subtract the higher value minus the lower value so if you take 38 700 and subtract it by 9525 you should get this figure 29 175. now the tax rate for

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