How To Calculate Tax In Excel Using If Function

On the second sheet create the named range rates.

How to calculate tax in excel using if function. To automatically calculate the tax on an income execute the following steps. So your formula must use the cell references like this. When you set the fourth argument of the vlookup function to true the vlookup function returns an exact match or if not found it returns the largest value smaller than lookup value a2. To calculate a tax rate based on a simple tax rate table you can use the vlookup function.

The basic formula is vlookup lookup value table array column to return approximate match true false in cell e3 type this formula vlookup e2 a3 b8 2 true. In this condition you can apply the vlookup function to calculate the income tax for a certain income in excel. Vlookup g4 tax table 2 true where tax table is the named range c5 d8. Formulas to calculate price including tax.

Select the cell you will place the calculated result enter the formula b1 b2 b1 is the price exclusive of tax and b2 is the tax rate and press the enter key. Select the cell you will place the calculated result at enter the formula vlookup c1 a5 d12 4 true c1 vlookup c1 a5 d12 1 true vlookup c1 a5 d12 3 true into it and press the enter key. In this condition you can easily calculate the sales tax by multiplying the price and tax rate. As user wants to calculate the taxable income and tax on the income so two rows created for calculating the taxable income and tax on the income a column.

Sometimes you may get the price exclusive of tax. Calculate tax vat if you have a product priced at 75 excluding vat the vat amount can be calculated as follows. Displayed as 6 859 in the example shown. This formula depends on vlookup function in approximate match mode.

Frequently you can get the tax table with cumulative tax for each tax bracket. For all examples we will use a vat rate of 16. The total tax is therefore 6 858 50. In the example shown the formula in g5 is.

The vlookup function finds the adjacent value based on the specified lookup value. Using the if formula to calculate with different tax rates usin. When in approximate match mode vlookup will scan through lookup values in a table which must be sorted in ascending order until a higher value is found. First a user needs to calculate the taxable income click on cell b6 subtract the exemptions and deduction amount from the total income write the formula in b6 b2 b3 b4.

Calculate tax rate using vlookup. But in excel values are stored in cells.