To do this we need to add a nested IF statement that tells Excel what to do if a salary is equal to or greater than the tax band 2 threshold, and the same for tax band 3. In C9, the formula written out will be =IF(salary is less than $29,100, then multiply by the income tax % of tax band 1) (Here we are using numeric values in E5 and E6 so that B4 to B6 can be formatted as text)įirst, the formula does not take into account what should happen if a salary is greater than tax band 1. First, we need a formula that compares her total salary with the relevant tax band maximum, and then calculates her income based on the relevant tax percentage.

The second offers a number of employee salaries as is usually the case, the more you earn, the more you are taxed. The first table refers to income tax bands and their associated % calculation and thresholds. The basic syntax of an IF statement describes a comparison between values and follows =IF(logical _ test,, ) Let's see how we can use IF in an Excel formula.īelow, we can see two tables. An IF statement simply sates that if a condition is true, then do this., if false, then do that. In Microsoft Excel, the IF function is one of the most common and most useful. Excel Formula Help – nested IF statements for calculating employee income tax

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