India vs United States: Tax Comparison

Compare income tax rates and take-home pay between India and United States

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On a $100,000 salary, you'd take home $73,812 in United States (California) versus $59,281 in India (Maharashtra) — a difference of $14,531/year ($1,211/month).

Tax Breakdown Comparison

United States

2025 tax year

Lower Tax

Take-Home Pay

$73,812

$6,151/mo

Effective Rate

26.2%

of gross

Gross$100,000
Income Tax -$13,449
California Tax -$3,989
Social Contributions -$8,750
Total -$26,188

India

2025-26 tax year

Take-Home Pay

$59,281

$4,940/mo

Effective Rate

40.7%

of gross

Gross$100,000
Income Tax -$25,080
Maharashtra Tax -$28
Social Contributions -$12,000
Surcharges -$3,612
Total -$40,719

Effective Tax Rate by Income

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Shows effective tax rate (total tax / gross income) at different income levels in USD

Life & Taxes

What it's like to live and earn in each country

Chasing the Global Dream

From the tech corridors of Bangalore to the innovation hubs of Silicon Valley, the bridge between India and the US is paved with ambition. Whether it's ambitious techies seeking the California gold rush or American expats drawn to India’s vibrant culture and booming economy, both nations offer a high-energy backdrop for career growth.

Vibrant Streets to Golden Coasts

Life in Maharashtra offers a sensory explosion of tradition and high-speed urbanity, where your money buys a lifestyle rich in service and community. In contrast, California promises the laid-back luxury of the Pacific coast, though you'll trade domestic conveniences for world-class infrastructure and a premium on privacy.

The Progressive Tax Tango

Both nations use a tiered system, but the logic varies: India’s new default regime aims for simplicity with lower rates across more brackets to encourage spending. The US system feels more aggressive at the top end, especially once you layer California’s state taxes and various federal surcharges on top of your base bill.

Safety Nets and Social Perks

In the US, your paycheck fuels a complex web of Social Security and Medicare, providing a structured but costly safety net. India focuses on the Employee Provident Fund, a more direct retirement savings approach that acts as a mandatory nest egg, supplemented by state-level professional contributions.

The Hidden Fine Print

The 'real' tax rate often hides in the extras: India adds an education cess to every bill, while the US might surprise you with uncapped disability insurance and additional Medicare levies. Ultimately, India wins on simplicity for the modern worker, while the US remains the high-stakes, high-reward choice for those aiming for the absolute top of the income ladder.

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India vs United States: Tax System Details

United States

Tax Year
2025
Currency
USD
Region Used
California
Key Assumptions
  • -Federal rates and brackets based on OBBBA 2025 updates for Single filers.
  • -California (CA) used as the representative subnational region.
  • -California state tax brackets and standard deduction are based on 2024/2025 inflation-adjusted estimates.
  • -Social Security (OASDI) wage base for 2025 is $176,100.
  • -California State Disability Insurance (SDI) 2025 rate of 1.1% included (contribution cap removed since 2024).
  • -Additional Medicare Tax (0.9%) is applied to wages exceeding $200,000 for single filers.
  • -Standard Deduction used for both Federal and State; itemized deductions (SALT, mortgage interest) excluded per worker profile.

India

Tax Year
2025-26
Currency
INR
Region Used
Maharashtra
Key Assumptions
  • -Alternate Personal Tax Regime (APTR) is used as it is the default for FY 2025-26.
  • -Standard deduction of INR 75,000 for salaried employees under APTR is included as a personal allowance.
  • -Professional Tax is modeled based on Maharashtra state rates (representative of a major economic hub).
  • -Section 87A Rebate (up to INR 60,000 for income <= 1.2M) is mentioned but standard deduction relief is prioritized in the relief field.
  • -Church tax is not applicable in India.

Calculation Methodology

What's Included

  • Federal/national income tax
  • State, provincial, or local taxes
  • Social security contributions
  • Healthcare levies (where mandatory)
  • Additional surcharges

Assumptions

  • Single filer, no dependents
  • Employment income only
  • Standard deductions applied
  • Age 35 (where relevant)
  • No special tax credits