MZ,

I interpreted your question a bit dirrently than Stefi. Coming from an
accounting background, I understand your question to be, "what is the income
tax based on the taxable income entered into D36?"

First of all, you are correct in your title asking for the "marginal" income
tax, but this is a bit more complex than simply multiplying your taxable
income by the tax bracket.

For example: If a person has $50K of taxable income, the tax rate on the
first $8,349 is 10% ($835), the rate on the next $25,600 is 15% ($3,840), and
the rate on the ramaining $16,051 is 25% ($4,013). If you add up the
individual tax calculation, the total tax is $8,688 or an overall tax rate of
17.4%.

This can be done with a series of calculations set up as a table, but you
will end up with a very large and cumbersome formula if you try to put it all
in one cell.

rzink

"MZ" wrote:

I am trying to make a single formula that will calculate a person's taxable
income assuming the six different marginal tax rates that range from 10% to
35%, as income increases

For a single taxpayer, the marginal tax rates and the associated income
amounts a

10% up to $8,350
15% up to $33,950
25% up to $82,250
28% up to $171,550
33% up to $372,950
35% over $372,950


I am using "IF" statements to test for each marginal tax rate.
I began the formula as follows, but it returns a value error.

Cell D36 is the taxpayer's income

=IF(D36<=8350,D36/10),IF(AND(D368350,D36<=D31),SUM(D36/10,D36/6.666))

Also, is the only way to multiply by a percentage to make a fraction with
the denominator the value of the percentage - e.g. 6.666 is 15%?

Thank you
--
MZ