Calculation of tax

Last Edited By Krjb Donovan
Last Updated: Mar 05, 2014 09:17 PM GMT

Question

What formular can I useto calculate the tax of an employee supposing his taxable income is say $2,322.00. Tax rates are as follows: First $ 50.00 - Free Next $ 50.00 - 5% Next $ 500.00 - 10% Next $ 1000.00 - 15% Next $1,500.00 - 17.5% The remainder - 25%

Answer

Augustine,

Assume the taxable income is in cell I4,

this formula =SUM(CHOOSE({1,2,3,4,5,6},0,MAX(MIN(I4-50,50)*0.05,0),MAX(MIN(I4-100,500)*0.1,0),MAX(MIN(I4-600,1000)*0.15,0),MAX(MIN(I4-1600,1500)*0.175,0),MAX(I4-3100,0)*0.25))

returns $328.85 which is what I get when I calculate it manually using the rules as I understand them.

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