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Thread: Income Tax Spreadsheet

  1. #1
    Join Date
    8th February 2007
    Posts
    4

    Income Tax Spreadsheet

    I am wanting to set up a formula on a spreadsheet that will take the year end income and determine federal income tax. Example: if value =<50000 then mutiple by 15%, if value is between 50000-75000 then the first 50000 is taxed at 15% and the amount between 50000-75000 is taxed at 25%, if value is between 75000-100000 then first 50000 is taxed at 15%, the next 25,000 is taxed at 25% and the remaining is taxed at 34%. if value is greter than 100000 then same applies as before and all value over 100000 is taxed at 39%.

    My brain exploded working on this so if anyone can figure it out that would be great,

    Thanks

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  2. #2
    Join Date
    12th September 2006
    Location
    The Great State of Texas
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    Re: Income Tax Spreadsheet

    Try this, assuming income is in A1:

    = 15% * MIN(A1,50000) + 25% * MAX( 0, MIN(A1-50000, 25000) ) + 34% * MAX( 0, MIN(A1-75000, 25000) ) + 39% * MAX(0, A1-100000)

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  3. #3
    Join Date
    4th July 2004
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    Canada
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    2,292

    Re: Income Tax Spreadsheet

    Here's another way...

    =SUMPRODUCT(--(A2>{0,50000,75000,100000}),A2-{0,50000,75000,100000},{0.15,0.1,0.09,0.05})

    ...where A2 contains the income.

    Hope this helps!

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  4. #4
    Join Date
    12th September 2006
    Location
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    Re: Income Tax Spreadsheet

    Use Domenic's -- it's much more elegant and intuitive.

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  5. #5
    Join Date
    8th February 2007
    Posts
    4

    Re: Income Tax Spreadsheet

    Domenic, this worked great, thanks!!!

    : D
    Last edited by ttanner; February 8th, 2007 at 22:10.

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