Calculating Progressive Income Tax 

Name​:​ _
​ ___________________
 
The percentage of your income taken by the government changes depending on your ​______________​. 

Tax levels are called​ _______ _________________​. 

You only pay that percent of tax on the money in each ​_____________​. 

There is both ​____________ ​(goes to the national government) and ​______________ ​(goes to the 
provincial/state government) income tax. We will look at just federal income tax for this example. 

The amount of money you make ​before ​tax is called your ​________ ________​. The amount of money you 
actually take home ​after​ taxes are taken off is called your ​_____ ________​. 

Federal Income Tax 

1. Fill out the tax bracket dollars and 
percent tax rates on the thermometer.  

→ The bottom line will be the upper 

limit of the first bracket, the next line up will 
be the upper limit of the second bracket, and 
so on. 

2. Pretend you make $60,000 as your gross income.  

→ Colour the thermometer up to $60,000. 

3. Calculate the dollar difference between each tax bracket, up to your gross 
income. 
→ This is the money that will be taxed at each rate. 

First Bracket: $​________ Second Bracket: $​___________

4. Calculate the amount of tax you would pay for each bracket of income. 
Add together to find total Federal income tax owed. 

First Bracket Tax: $​________ Second Bracket Tax: $​___________

 
 
Total Federal income tax owing​: $​ ​____________

The Struggle Is Real ​Math Resources  

Calculating Progressive Income Tax - KEY
Tax brackets and rates are the 2021 Canadian rates. Feel free to use your national rates and brackets!

The percentage of your income taken by the government changes depending on your ​income​. 

Tax levels are called​ tax brackets​. 

You only pay that percent of tax on the money in each ​bracket​. 

There is both ​federal ​(goes to the national government) and ​provincial/state ​(goes to the provincial/state 
government) income tax. We will look at just federal income tax for this example. 

The amount of money you make ​before ​tax is called your​ ​gross income​. The amount of money you actually 
take home ​after​ taxes are taken off is called your ​net income​. 

Federal Income Tax 

1. Fill out the tax bracket dollars and percent tax rates on the 
thermometer.  

→ The bottom line will be the upper limit of the first 

bracket, the next line up will be the upper limit of the second 
bracket, and so on. 

2. Pretend you make $60,000 as your gross income.  

→ Colour the thermometer up to $60,000. 

3. Calculate the dollar difference between each tax bracket, up to your gross income. 
→ This is the money that will be taxed at each rate. 

First Bracket: $​49,020 Second Bracket: $​60,000 - 49,020 = ​10,980

4. Calculate the amount of tax you would pay for each bracket of income. Add together to find 
total Federal income tax owed. 

First Bracket Tax: $​49,020 x 0.15 = $​7,353 Second Bracket Tax: $​10,980 x 0.205 = $​2251
 
Total Federal income tax owing​: $​ ​9,604
This small worksheet is part of a unit on taxes, budgeting, and is preparation for a financial
simulation project called Game of Life - check them out at my TeachersPayTeachers.com store!
Working to make mathematics less of a struggle :)

The Struggle Is Real ​Math Resources