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Income Tax Spreadsheet

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  • 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

  • #2
    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)
    Entia non sunt multiplicanda sine necessitate.

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    • #3
      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
        Re: Income Tax Spreadsheet

        Use Domenic's -- it's much more elegant and intuitive.
        Entia non sunt multiplicanda sine necessitate.

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        • #5


          Re: Income Tax Spreadsheet

          Domenic, this worked great, thanks!!!

          : D
          Last edited by ttanner; February 8th, 2007, 23:10.

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