Income Tax Calculation Formula With If Statement In Excel

Formulas to calculate price including tax.

Income tax calculation formula with if statement in excel. Add an amount column right to the new tax table. 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. Specifically we ll use vlookup with a helper column we ll remove the helper column with sumproduct and then we ll use data validation and the indirect function to make it easy to pick the desired tax table such as single or married filing joint. This is where you use comparison operators to compare two values.

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. Prepare the following given sheet in ms excel as per your need for income tax calculation. Hey people i am working on developing a worksheet that will calculate employee tax payable to the revenue authority. The second offers a number of employee salaries.

Add a tax column right to the new tax table. If b13 250000 0 if b13 500000 b13 250000 10 if b13 1000000 b13 500000 20 25000 b13 1000000 30 125000. To calculate the income tax with the help of if function you have to prepare following sheet in excel. In this post we ll examine a couple of ideas for computing income tax in excel using tax tables.

This is the proper syntax of the if then function. The then part of the function comes after the first comma and includes two arguments separated by a comma. If logic test value if true value if false the if part of the function is the logic test. If you want to calculate income tax amount then you have to type given formula in the cell c13.

The income tax relief in kenya is kes 1 162. Income tax calculation formula with if statement in excel step 1. For example a formula for an income figure between 389 00 and 1289 00 in a pay period would be assuming the gross income figure is in cell d6. But in excel values are stored in cells.

As is usually the case the more you earn the more you are taxed. In the cell e6 type the formula c 1 a6 c 1 is the cell with your income and then drag the autofill handle to the whole amount column. The first table refers to income tax bands and their associated calculation and thresholds. Calculate tax vat if you have a product priced at 75 excluding vat the vat amount can be calculated as follows.

If the income tax calculated by the below formula is less than or equal to kes 1 162 the result should be a zero. So your formula must use the cell references like this. The basic syntax of an if statement describes a comparison between values and follows if logical test value if true value if false let s see how we can use if in an excel formula. Below we can see two tables.

To calculate income tax amount you have to type following given formula in cell c13 if b13 b 2 nil if b13 b 3 b13 200000 c 3 if b13 b 4 b13 500000 c 4 30000 b13 1000000 c 5 130000.