For convenience, the range F5:G9 is namedtax_data.
The explanation below shows how to retrieve the correct tax rate for each income with the VLOOKUP function.
VLOOKUP function
VLOOKUP is an Excel function to get data from a table organizedvertically.
For a complete introduction to VLOOKUP with many examples and video links,see this article.
A formula in column D multiples the income by the tax rate to display the total tax amount.
Note: this formula calculates a tax rate in a simple one-tier scheme.
Whenrange_lookupis omitted, it defaults to TRUE and VLOOKUP performs an approximate match.
For a complete overview of VLOOKUP with many examplessee our VLOOKUP page.
Note: I think the default behavior of VLOOKUP isdangerousbecause it can easily produce incorrect results that look normal.
Total tax
The tax rates in column D are decimal values formatted with thepercentage number format.
