**Question description:**

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

Solved by F. Y. in 20 mins

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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

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