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Excel IF Practice Question: Using nested IF with these simplified slabs, find the tax: nothing up to…

By Rinkesh Shah, founder of Cellgrids.

The question

Using nested IF with these simplified slabs, find the tax: nothing up to 250000; 5% of the amount above 250000 up to 500000; above 500000 it is 12500 plus 20% of the amount above 500000. Fill C2 to C4.

The data

	A	B	C
1	Employee	Income	Tax
2	Raj	200000	?
3	Sia	400000	?
4	Tom	600000	?

The yellow cells are where your answer goes.

Show answer

Expected results:

C2 = 0
C3 = 7500
C4 = 32500

How it works

Explanation: Slab calculations are a classic nested IF. Each IF handles one slab and passes the rest to the next IF. These slabs are only for practice and are not real tax rules.
Syntax: =IF(B2<=250000,0,IF(B2<=500000,(B2-250000)*5%,12500+(B2-500000)*20%))
Raj: 200000 is within the free slab, tax 0. Sia: (400000 - 250000) x 5% = 7500. Tom: 12500 + (600000 - 500000) x 20% = 32500.

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IF syntax

=IF(logical_test, value_if_true, value_if_false)

Returns one value if a condition is true, another if false. Flagging an employee as Pass or Fail based on a score cutoff. Full IF guide.