# Solved I want to find the formula for salary tax calculation.

Microsoft Office excel 2003
September 11, 2014 at 05:26:52
Specs: Windows 7, 2 GHz
 The salary has the following scheduleIf salary is up to 5000 its exempted from tax.If salary is up to 12500, so 12500-5000=7500. now 7500 is taxable with 2%.If salary is up to 100000, so 100000-12500=97500, now 97500 is taxable with 10%.If any thing above 100000 it is taxable with 20%.e.gSalary = 150,000Then,first exempted part, 5000 = 0 tax, remaining salary 145,000for 2% tax, 7500 = 150 tax, remaining salary 137,500for 10% tax, 100,000 = 10,000 tax, remaining salary 37,500and for 20% tax, 37,500 = 7500, remaining salary 0Now total tax is 17,650 deducted & net salary 132,350.

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#1
September 12, 2014 at 06:50:42
 Try the formula suggested below.You supplied one complete example (150K) and the formula works for that. The other example you supplied doesn't make sense to me:If salary is up to 100000, so 100000-12500=97500, now 97500 is taxable with 10%.100000-12500 = 87500, not 97500. My formula returns 8750 in taxes for a 100K salary.=IF(A1>100000,(A1-112500)*0.2+10150,IF(A1>12500,(A1-12500)*0.1,IF(A1>5000,(A1-5000)*0.02,0)))BTW...you might want to consider putting your salary breakpoints and tax percentages in a table and then refer to that table in your formula. That way you only have to edit the table if the breakpoints and/or tax percentages change. There will be no need to edit the formula(s).message edited by DerbyDad03

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