Forum Discussion
IF function question
Hey!
I'm building a tax spreadsheet and I have a cell that needs to calculate progressive tax brackets. I need the IF statement to be built to tax the taxable income from 0 to 36250 at 15%, then to tax the balance above that at 28% (i.e. if the taxable income is 40,000, it would tax the first 36250 at 15% then tax the remaining 3750 at 28%.)
Any suggestions on how I can build that formula? TIA
Hi Brittney,
Haytham Amairah is fully right. Just for fun another one.
Another way at this is to look at it from another angle.
and use the fact all all income are taxed with 15%
The incomes above 36250 are just taxed with an extra 13%
Then you get =A2*15%+IF(A2>36250,((A2-36250)*13%))
Say another layer would be 35% at 50000 you just add +IF(A2>50000,((A2-50000)*7%))
and so on
Thanks so much. I have an old post here.
From your solution, we can do something like
=(A2 * 0.15) + MAX(0, (A2 - 36260) * 0.13)
for another layer, like yours example
=(A2 * 0.15) + MAX(0, (A2 - 36260) * 0.13) + MAX(0, (A2 - 50000) * 0.07)
Thanks again, Willie de Wit and Haytham Amairah.
Edition: The logic in your solutions are fully right (do the calculation if the condition is correct). My approach is just to do it (it is for reading formula easier, but the logic is not correct)
Brittney,
The formula is like this:
=IF(A2>36250,(36250*15%)+((A2-36250)*28%),A2*15%)
Please find the attached file.
