• Skip to main content
  • Skip to header right navigation
  • Skip to site footer

My Online Training Hub

Learn Dashboards, Excel, Power BI, Power Query, Power Pivot

  • Courses
  • Pricing
    • Free Courses
    • Power BI Course
    • Excel Power Query Course
    • Power Pivot and DAX Course
    • Excel Dashboard Course
    • Excel PivotTable Course – Quick Start
    • Advanced Excel Formulas Course
    • Excel Expert Advanced Excel Training
    • Excel Tables Course
    • Excel, Word, Outlook
    • Financial Modelling Course
    • Excel PivotTable Course
    • Excel for Customer Service Professionals
    • Excel for Operations Management Course
    • Excel for Decision Making Under Uncertainty Course
    • Excel for Finance Course
    • Excel Analysis ToolPak Course
    • Multi-User Pricing
  • Resources
    • Free Downloads
    • Excel Functions Explained
    • Excel Formulas
    • Excel Add-ins
    • IF Function
      • Excel IF Statement Explained
      • Excel IF AND OR Functions
      • IF Formula Builder
    • Time & Dates in Excel
      • Excel Date & Time
      • Calculating Time in Excel
      • Excel Time Calculation Tricks
      • Excel Date and Time Formatting
    • Excel Keyboard Shortcuts
    • Excel Custom Number Format Guide
    • Pivot Tables Guide
    • VLOOKUP Guide
    • ALT Codes
    • Excel VBA & Macros
    • Excel User Forms
    • VBA String Functions
  • Members
    • Login
  • Blog
  • Excel Webinars
  • Excel Forum
    • Register as Forum Member

Tax Calculation formula help|General Excel Questions & Answers|Excel Forum|My Online Training Hub

You are here: Home / Tax Calculation formula help|General Excel Questions & Answers|Excel Forum|My Online Training Hub

vba course banner

Avatar
sp_LogInOut Log In sp_Registration Register
sp_Search Search
Advanced Search|Last Search Results
Search
Forum Scope




Match



Forum Options



Minimum search word length is 3 characters - maximum search word length is 84 characters
sp_Search Search
sp_RankInfo
Lost password?
sp_CrumbsHome HomeExcel ForumGeneral Excel Questions & Answe…Tax Calculation formula help
sp_PrintTopic sp_TopicIcon
Tax Calculation formula help
Avatar
Candid
Member
Members
Level 0
Forum Posts: 8
Member Since:
September 1, 2018
sp_UserOfflineSmall Offline
1
March 26, 2019 - 11:01 am
sp_Permalink sp_Print

Hi All,

Can someone help me with a IF formula that will make the below tax calculation based on whatever taxable income is made?

I would also like the formula to calculate the taxes for each tax percentage line and not cumulative.

Tax payable on income up to $1,000,000 @     5.5%
Tax payable on income greater than $1,000,000 to $20,000,000 @   3.0%
Tax payable on income greater than $20,000,000 to $30,000,000 @   2.5%
Tax payable on income exceeding $30,000,000 @     1.0%

Thanks.

sp_AnswersTopicSeeAnswer See Answer
Avatar
Philip Treacy
Admin
Level 10
Forum Posts: 1529
Member Since:
October 5, 2010
sp_UserOnlineSmall Online
2
March 27, 2019 - 2:30 pm
sp_Permalink sp_Print

Hi Candid

You should read about nested IF statements

  =IF(A2<=1000000,0.055,IF(A2<=20000000,0.03,IF(A2<=30000000,0.025,0.01)))

Workbook attached with example.

Regards

Phil

Avatar
Candid
Member
Members
Level 0
Forum Posts: 8
Member Since:
September 1, 2018
sp_UserOfflineSmall Offline
3
March 28, 2019 - 10:28 am
sp_Permalink sp_Print sp_EditHistory

Hi Phil,

I did not explain myself well as to what I was requesting. I wanted the formula to calculate the taxes from the rates by the tax bands or ranges so my first formula should provide the tax calculation of $55,000 once the income reaches $1M or surpass and the other percentages would kick in once the income surpasses each range.

Thanks also for you response as I will also use that formula as well.

Regards,

Candid

Avatar
Philip Treacy
Admin
Level 10
Forum Posts: 1529
Member Since:
October 5, 2010
sp_UserOnlineSmall Online
4
March 28, 2019 - 10:51 am
sp_Permalink sp_Print

Hi Candid,

This is why it's always best to include a workbook and several examples of the desired outcomes.

So to make sure we are clear, do you want to calculate a single figure for the total tax for a given income based on the tax bands e.g. for an income of $24,000,000 the workbook will show a single figure of $725,000?

Or do you want the tax for each band listed on separate rows e.g.

Tax payable on income up to $1,000,000 @  5.5% 55,000
Tax payable on income greater than $1,000,000 to $20,000,000 @  3% 570,000
Tax payable on income greater than $20,000,000 to $30,000,000 @ 2.5% 100,000
Tax payable on income exceeding $30,000,000 @  1% 0

 Regards

Phil

Avatar
Candid
Member
Members
Level 0
Forum Posts: 8
Member Since:
September 1, 2018
sp_UserOfflineSmall Offline
5
March 28, 2019 - 10:59 am
sp_Permalink sp_Print

Hi Phil,

Yes, the tax for each band listed on separate rows like how you have as your eg.

Thanks,

Candid

Avatar
Philip Treacy
Admin
Level 10
Forum Posts: 1529
Member Since:
October 5, 2010
sp_UserOnlineSmall Online
6
March 28, 2019 - 11:18 am
sp_Permalink sp_Print sp_EditHistory

Hi Candid,

try this attachment.

The values for the bands (1M, 20M etc) are hardcoded into the formulae.  So you should replace these with cell references if these values could change.

Regards

Phil

Avatar
Candid
Member
Members
Level 0
Forum Posts: 8
Member Since:
September 1, 2018
sp_UserOfflineSmall Offline
7
March 28, 2019 - 11:29 am
sp_Permalink sp_Print

Hi Phil,

Exactly what I wanted.

Thanks for your assistance.

Regards,

Candid

Avatar
Candid
Member
Members
Level 0
Forum Posts: 8
Member Since:
September 1, 2018
sp_UserOfflineSmall Offline
8
March 28, 2019 - 11:41 am
sp_Permalink sp_Print

Hi Phil,

I just tried to replace the hard coded numbers with cell references and the calculations did not work. I reference it to the A6 but I must be doing something wrong.

Do you want to update the worksheet with this example as well?

Hope i am not asking too much.

Thanks.

Avatar
Philip Treacy
Admin
Level 10
Forum Posts: 1529
Member Since:
October 5, 2010
sp_UserOnlineSmall Online
9
March 28, 2019 - 1:05 pm
sp_Permalink sp_Print sp_EditHistory

No worries - see attached.

P

sp_AnswersTopicAnswer
Answers Post
Avatar
Candid
Member
Members
Level 0
Forum Posts: 8
Member Since:
September 1, 2018
sp_UserOfflineSmall Offline
10
March 29, 2019 - 10:02 am
sp_Permalink sp_Print

Hi Phil,

Thank you for your assistance to this novice, it was greatly appreciated.

Regards,

Candid

Avatar
Philip Treacy
Admin
Level 10
Forum Posts: 1529
Member Since:
October 5, 2010
sp_UserOnlineSmall Online
11
March 29, 2019 - 1:03 pm
sp_Permalink sp_Print

You're welcome.

sp_Feed
Go to top
Forum Timezone: Australia/Brisbane
Most Users Ever Online: 245
Currently Online: Philip Treacy
Guest(s) 9
Currently Browsing this Page:
1 Guest(s)
Top Posters:
SunnyKow: 1432
Anders Sehlstedt: 873
Purfleet: 414
Frans Visser: 346
David_Ng: 306
lea cohen: 222
Jessica Stewart: 216
A.Maurizio: 202
Aye Mu: 201
jaryszek: 183
Newest Members:
Melanie Ford
Isaac Felbah
Adele Glover
Hitesh Asrani
Rohan Abraham
Anthony van Riessen
Erlinda Eloriaga
Abisola Ogundele
MARTYN STERRY
Rahim Lakhani
Forum Stats:
Groups: 3
Forums: 24
Topics: 6356
Posts: 27793

 

Member Stats:
Guest Posters: 49
Members: 32324
Moderators: 3
Admins: 4
Administrators: Mynda Treacy, Philip Treacy, Catalin Bombea, FT
Moderators: MOTH Support, Velouria, Riny van Eekelen
© Simple:Press —sp_Information

Sidebar

Blog Categories

  • Excel
  • Excel Charts
  • Excel Dashboard
  • Excel Formulas
  • Excel PivotTables
  • Excel Shortcuts
  • Excel VBA
  • General Tips
  • Online Training
  • Outlook
  • Power Apps
  • Power Automate
  • Power BI
  • Power Pivot
  • Power Query
microsoft mvp logo
trustpilot excellent rating
Secured by Sucuri Badge
MyOnlineTrainingHub on YouTube Mynda Treacy on Linked In Mynda Treacy on Instagram Mynda Treacy on Twitter Mynda Treacy on Pinterest MyOnlineTrainingHub on Facebook
 

Company

  • About My Online Training Hub
  • Disclosure Statement
  • Frequently Asked Questions
  • Guarantee
  • Privacy Policy
  • Terms & Conditions
  • Testimonials
  • Become an Affiliate

Support

  • Contact
  • Forum
  • Helpdesk - For Technical Issues

Copyright © 2023 · My Online Training Hub · All Rights Reserved. Microsoft and the Microsoft Office logo are trademarks or registered trademarks of Microsoft Corporation in the United States and/or other countries. Product names, logos, brands, and other trademarks featured or referred to within this website are the property of their respective trademark holders.