**Question description:**

*This user has given permission to use the problem statement for this blog.*

Using the Logical IF function, compute the tax on income with more than two (2) tax brackets.

Solved by F. Y. in 20 mins

This is the chat thread from the real Excelchat help session. It contains no private user information.

Excelchat Expert
14/12/2017 - 10:27

Welcome to Got It Pro excel

User
14/12/2017 - 10:27

hey i need help with that

User
14/12/2017 - 10:27

and thank you

Excelchat Expert
14/12/2017 - 10:27

I am glad to be able to help you today

User
14/12/2017 - 10:27

the table income is 12000

User
14/12/2017 - 10:27

6000

User
14/12/2017 - 10:27

5000

User
14/12/2017 - 10:28

50000

Excelchat Expert
14/12/2017 - 10:28

What are the conditions for the tax?

User
14/12/2017 - 10:29

if table income is less then 10000 the tax formula is taxable income *3%

User
14/12/2017 - 10:30

if taxable income is not less then 10000 the formula is 10000 *3% + (taxable income-10000)*5%

User
14/12/2017 - 10:30

show me using if function please

Excelchat Expert
14/12/2017 - 10:30

OK

User
14/12/2017 - 10:30

are the incomes the tax brackets

User
14/12/2017 - 10:30

￼

User
14/12/2017 - 10:31

Using the Logical IF function, compute the tax on income with more than two (2) tax brackets.

Excelchat Expert
14/12/2017 - 10:31

=if(A4<10000,A4*0.03,(10000*0.03)+(A4*0.05))

User
14/12/2017 - 10:32

can u send the worksheet

User
14/12/2017 - 10:32

as excel worksheet

Excelchat Expert
14/12/2017 - 10:32

Of course!

User
14/12/2017 - 10:32

Using the Logical IF function, compute the tax on income with more than two (2) tax brackets.

User
14/12/2017 - 10:32

for the questions

User
14/12/2017 - 10:32

what is the tax bracket

Excelchat Expert
14/12/2017 - 10:33

Tax brackets are the divisions at which tax rates change in a progressive tax system (or an explicitly regressive tax system, although this is much rarer). Essentially, they are the cutoff values for taxable income — income past a certain point will be taxed at a higher rate.

Excelchat Expert
14/12/2017 - 10:34

If the income is more than 10,000 so the tax is higher

User
14/12/2017 - 10:34

so a2 and a3

User
14/12/2017 - 10:34

are two tax brackets

Excelchat Expert
14/12/2017 - 10:34

in this case 3% of 10,000 plus 5% of the income

Excelchat Expert
14/12/2017 - 10:34

No, the tax brackets are 3% and 5%

Excelchat Expert
14/12/2017 - 10:35

3% for less than 10,000

User
14/12/2017 - 10:35

so this is a 2 bracket question

Excelchat Expert
14/12/2017 - 10:35

Yes

User
14/12/2017 - 10:35

could u show me with one more bracket

Excelchat Expert
14/12/2017 - 10:35

[Uploaded an Excel file]

Excelchat Expert
14/12/2017 - 10:35

Of course

User
14/12/2017 - 10:35

alright

Excelchat Expert
14/12/2017 - 10:36

For example

User
14/12/2017 - 10:36

this same problem

User
14/12/2017 - 10:36

just include 7%

User
14/12/2017 - 10:36

as third bracket

User
14/12/2017 - 10:37

could u ujst

User
14/12/2017 - 10:37

make up question

Excelchat Expert
14/12/2017 - 10:37

Ok for less than 10,000 is 3%, for more than 10,000 and less than 40,000 is 5%

User
14/12/2017 - 10:37

including 3rd bracket

User
14/12/2017 - 10:37

alright

Excelchat Expert
14/12/2017 - 10:37

more than 40,0000 is 7%

User
14/12/2017 - 10:37

thank you

Excelchat Expert
14/12/2017 - 10:38

but we need to add the taxes of the previous level

Excelchat Expert
14/12/2017 - 10:38

for example 20,000 is (10,000*3%) plus (20,000*5%)

Excelchat Expert
14/12/2017 - 10:39

in the third bracket for example income= 70,000

Excelchat Expert
14/12/2017 - 10:39

50,000*5% plus 70,000*7%

User
14/12/2017 - 10:40

alright

Excelchat Expert
14/12/2017 - 10:42

Let me make the formula

Excelchat Expert
14/12/2017 - 10:42

with the 3 brackets

User
14/12/2017 - 10:42

alright

User
14/12/2017 - 10:43

Income Tax rate < $200 Tax rate >= $200 Tax rate >= $500 Tax value
1 A 100 5% 10% 15% 5
2 B 200 5% 10% 15% 30
3 C 300 5% 10% 15% 45
Total 600 5% 10% 15% 60

User
14/12/2017 - 10:44

ignore that

Excelchat Expert
14/12/2017 - 10:45

=if(A2<10000,A2*0.03,if(and(A2>=10000,A2<50000),(10000*0.03)+(A2*0.05),(50000*0.05)+(A2*0.07)))

Excelchat Expert
14/12/2017 - 10:45

this is the formula for 3 brackets

User
14/12/2017 - 10:45

can you send me it please

Excelchat Expert
14/12/2017 - 10:45

of course!

User
14/12/2017 - 10:45

thank you very much

User
14/12/2017 - 10:45

very much appreciated

Excelchat Expert
14/12/2017 - 10:45

[Uploaded an Excel file]

Excelchat Expert
14/12/2017 - 10:46

Session is about to end

**This is the output file from the real Excelchat help session:**

*This is an example of the expert help you can get. It contains no private user information.*