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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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