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Excel Tax Table Calculation Question

Posted on 2013-01-30
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Hi. I have attached a simple spreadsheet with the 2013 Corporate Tax Table.

I simply need a formula (no arrays, please) that calculates the corporate tax I will owe on my business income.

It's a graduated scale, and I've included a sample calculation to show specifically what I'm looking for.

Thanks in advance!
EE.xls
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Question by:Tim Jackoboice
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4 Comments
 
LVL 43

Accepted Solution

by:
Saqib Husain, Syed earned 2000 total points
ID: 38837279
Please recheck your calculation for 120,000

Total tax
=SUMPRODUCT((B2:B8<A18)*(C2:C8)*(B2:B8-A2:A8))+VLOOKUP(A18,A2:C9,3)*(A18-VLOOKUP(A18,A2:C9,1))

Marginal tax
=VLOOKUP(A18,A2:C9,3)

Effective tax
=B18/A18
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LVL 50

Expert Comment

by:barry houdini
ID: 38837338
If you make C1 blank then you can use this formula for total tax

=SUMPRODUCT((A18>A2:A9)+0,A18-A2:A9,C2:C9-C1:C8)

regards, barry
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LVL 23

Expert Comment

by:NBVC
ID: 38837342
I am not sure your 120,000 taxes are calculated correctly.  I get 30,050.

Try:

In B18:

=SUMPRODUCT(--(A18>{0;50000;75000;100000;335000;10000000;15000000;18333333}),(A18-{0;50000;75000;100000;335000;10000000;15000000;18333333}),{0.15;0.1;0.09;0.05;-0.05;0.01;0.03;-0.03})

in A22:

=LOOKUP(A18,A2:C9)

in A23:

=B18/A18
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Author Closing Comment

by:Tim Jackoboice
ID: 38837376
Thanks, guys. Barry, ssaqibh beat you by a few minutes, and I actually can't leave C1 blank as it has to have a header. NB_VC, your formula was a bit too involved, and as the tax code parameters change, I'll need to change the amounts, which were "hard-coded" into the formula in your answer. ssaqibh, your answer worked perfectly, and you are all correct that the calculation in my example for $120,000 was wrong (I missed adding in a marginal bracket, which is why I need help from you guys so often!)<br /><br />I really appreciate it, guys. ssaqibh and Barry, you've bailed me out more than a few times, and I'm as appreciative as I am awed by how fast and simple you provide answers to what seem to me as quite complex. NB_VC, thanks to you for helping as well. <br /><br />Have a great day!
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