Calculate John's monthly net income given his gross income and tax obligations.

Answer

To find John's monthly net income, we need to determine his taxable income and the amount of tax he pays. Here are the steps: 1. **Identify Gross Income and Non-Taxable Allowance:** - Gross Income = €30,000 - Non-Taxable Allowance = €9,500 2. **Calculate Taxable Income:** Taxable Income = Gross Income - Non-Taxable Allowance = €30,000 - €9,500 = €20,500 3. **Calculate Tax:** The tax is calculated in bands: - First €6,000 at 10%: Tax = €6,000 * 10% = €600 - Next €10,000 (from €6,000 to €16,000) at 15%: Tax = €10,000 * 15% = €1,500 - Remaining amount (from €16,000 to €20,500) at 25%: Calculation for remaining amount = €20,500 - €16,000 = €4,500 Tax = €4,500 * 25% = €1,125 **Total Tax Calculation:** Total Tax = Tax on first €6,000 + Tax on next €10,000 + Tax on remaining €4,500 = €600 + €1,500 + €1,125 = €3,225 4. **Calculate Net Income:** Net Income = Gross Income - Total Tax = €30,000 - €3,225 = €26,775 5. **Convert Annual Net Income to Monthly Net Income:** Monthly Net Income = €26,775 / 12 = €2,231.25 Thus, John's monthly net income is approximately €2,231.25.