Tax rate calculation

[stewie1234]

I have spent literally over 4 hours trying to figure this out. Please, if you can help. SO, my boss wants me to have in a cell if someone makes less than or equal to 300000 then times another cell by 20% but at minimum the answer must be 25000 and in the same cell, if the person makes more than 300000 then the person needs to be taxed at 25% in a different cell but must show a minimum of 72000. I have =IF(D1<=300000,D11*20%,D11*0.25) this in one cell then below it, I have =IF(D1<=300000,MIN(25000,D11*20%),IF(D1>300000,MIN(72000,D11*25%),0)) but its skewed because the answer to their net worth can be negative or positive. Is there something I'm not thinking of? PLEASE help me.

 

[jtakw]

Hi,

If I understand your scenario correctly, your formula:

=IF(D1<=300000,MIN(25000,D11*20%),IF(D1>300000,MIN(72000,D11*25%),0))

should be, MAX, instead of MIN:

=IF(D1<=300000,MAX(25000,D11*20%),IF(D1>300000,MAX(72000,D11*25%),0))

Don't really know what you mean by "their net worth can be negative or positive", and also what's in D11?

 

[stewie1234]

Hi,

If I understand your scenario correctly, your formula:

=IF(D1<=300000,MIN(25000,D11*20%),IF(D1>300000,MIN(72000,D11*25%),0))

should be, MAX, instead of MIN:

=IF(D1<=300000,MAX(25000,D11*20%),IF(D1>300000,MAX(72000,D11*25%),0))

D11 is where the persons net worth is, D1 is their income and in between are adjustments and costs. I tried with max instead of min and I don't know how to make it to where the minimum is -25000 for living expenses (20%) for earnings of D1 and the 20% is taxed on D11 and when they make more than 300k in D1 then 25%. If the answer is negative or positive the answer is skewed, I wish I could upload my sheet so you could see it. Thank you so much for taking time to respond also!!!!!

 

[jtakw]

Hi again,

Perhaps this will help with uploading a sample of your worksheet: http://www.mrexcel.com/forum/about-board/508133-attachments.html#post2545970

Will try to help further if I can.