How do you calculate taxes?
Taxes work in many different ways, and come in many different forms. There are the federal and state income tax, property tax, estate tax, sales tax, sin tax, and hotel tax. Sometimes it can be a little difficult to calculate exactly how much you owe in a given year, or how much you owe in a given transaction. For starters, to calculate the income tax you owe at the federal level you must first take your yearly salary you've made over the course of the year. Then, while keeping your income in mind, find your tax rate in your respective tax bracket. You'll then multiply your tax rate by your income, and whatever you get is the estimated money you owe. Example: If i were to make $150,000 in a year, my federal tax rate is 28%. I would multiply $150,000 by 0.28 (28%) and get a total of $42,000 that is due for taxes. This applies to pretty much all forms of taxes, but there are some instances where it does not work that way.