Calculate sales tax

[JeffB]

Our local sales tax is 7% on the first $5,000 then 6% for evertthing over
$5,000. What formula would I use?

 

[מיכ×ל (מיקי) ×בידן]

Try this: =MIN(A1,5000)*7%+(A1-5000)*6%
Micky

 

[TedMi]

Not quite. For a sale of $1000, that formula computes a tax of -170!.
Correct formula:
=Min(A1,$C$1)*7% + IF(A1>$C$1,(A1-$C$1)*6%,0)
where C1 contains the change-of-rate threshold (5000 in your example).
Putting the threshold in a cell makes it much easier to change the
calculation when the threshold changes (as it surely will someday).
-TedMi

 

[Joe User]

Our local sales tax is 7% on the first $5,000
then 6% for evertthing over $5,000. What
formula would I use?

=MIN(A1*7%, 5000*7%+(A1-5000)*6%)

You could write 350 instead of 5000*7%.