Hi - Dave here.

Happy New Year!

Unfortunately, one of the tasks associated with the new year is taxes 😐

I've updated my income tax bracket calculation worksheet with 2025 rates.This worksheet stores U.S. tax rates for 2023, 2024, and 2025, so you can change the year to compare the effect of tax rate changes.

You can see what this looks like in the worksheet below, where both C4 and F4 contain dropdown menus:

Income tax bracket worksheet for 2025

[Download the workbook and read the full explanation]

Although this worksheet applies only to U.S. taxpayers, it's an interesting example of how to calculate taxes in a progressive system with multiple brackets. It also uses some advanced formulas to fetch the correct rates based on filing status and year. Read the complete explanation and download the workbook at the link above.

Note: Sheet1 contains a "modern" solution that uses dynamic array formulas and requires Excel 365 or Excel 2024. Sheet2 contains a "traditional" solution that should work in any version. Both approaches are explained in the article.

Excel formulas

We maintain a list of over 1000 working formulas here.

If you need more structure, we also offer video training.

Have a great weekend!

Dave

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