# Excel - IF Function Problem - Expert Solution

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
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
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
Excelchat Expert 14/12/2017 - 10:46

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.

Get instant expert help with Excel and Google Sheets

#### Post your problem and you’ll get expert help in seconds.

Your message must be at least 40 characters
Your privacy is guaranteed. Your session will not be used for blog unless you give us persmission.