Tax Rates and IF function

**Hadoushi** · 03-16-2013, 06:24 PM

Hi everyone

Need a bit of an assist here. I need to calculate income tax, with respect to the following tax brackets.

Taxable income (R) Tax Rates
0 – 165 600 18% of each R1
165 601 – 258 750 R29 808 + 25% of the amount above R165 600
258 751 – 358 110 R53 096 + 30% of the amount above R258 750
358 111 – 500 940 R82 904 + 35% of the amount above R358 110
500 941 – 638 600 R132 894 + 38% of the amount above R500 940
638 601 and above R185 205 + 40% of the amount above R638 600

Tax Class Tax Rebates
Primary R12 080
Additional R6 750 (Persons 65 and older)
Tertiary R2 250 (Persons 75 and older)

Tax Class Tax Threshold
Below age 65 R67 111
Age 65 to below 75 R104 611
Age 75 and over R117 111

all values annual

How do I do this? If I use the IF function, it will be incredibly long and tricky...

**Dunc3142** · 03-16-2013, 08:45 PM

I think I have what you need.
If this is what you need please mark post as solved and click the * lower left of post to add to my reputation.

**Hadoushi** · 03-17-2013, 05:44 AM

Hi there, Dunc!

Thank you so much for your response.

The answers need to coincide with this tax calculator "http://www.oldmutual.co.za/markets/south-african-budget/income-tax-calculator.aspx".

Also, there were some errors in the transferring of the data in the 'table' I provided. I corrected this.

The tax thresholds mean that if the person earns less than that value, they are charged no tax.