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Salary and taxes

You just got a new job as an entry-level Data Scientist at a technology company in New York City with a decent starting salary of $85,000 per year.

Unfortunately, after state and local taxes, you can expect to be sending roughly 30% back to the government each year.

You will need to calculate your monthly take home pay after taxes in order to begin budgeting.

This exercise is part of the course

Introduction to Financial Concepts in Python

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Exercise instructions

  • Assume a 30% tax rate and a base salary of $85,000.
  • Calculate your take home salary after taxes.
  • Calculate your monthly salary after taxes (Hint: You can use simple division in this case).

Hands-on interactive exercise

Have a go at this exercise by completing this sample code.

# Enter your annual salary
salary = ____

# Assume a tax rate of 30%
tax_rate = ____

# Calculate your salary after taxes
salary_after_taxes = ____
print("Salary after taxes: " + str(round(salary_after_taxes, 2)))

# Calculate your monthly salary after taxes
monthly_takehome_salary = ____
print("Monthly takehome salary: " + str(round(monthly_takehome_salary, 2)))
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