India Tax Calculator (2026)

Income tax rates and take-home pay for India

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India Income Tax Brackets (2025/26)

Bracket Income Range Rate
Basic exemption limit₹0 - ₹250,0000.0%
Slab 1₹250,000 - ₹500,0005.0%
Slab 2₹500,000 - ₹1,000,00020.0%
Slab 3₹1,000,000+30.0%

Tax credit: ₹12,500

Employees' Provident Fund (EPF)

Bracket Income Range Rate
EPF contribution rate₹0+12.0%

Surcharge on income

Bracket Income Range Rate
No surcharge₹0 - ₹5,000,0000.0%
Surcharge above 5M₹5,000,000 - ₹10,000,00010.0%
Surcharge above 10M₹10,000,000 - ₹20,000,00015.0%
Surcharge above 20M₹20,000,000 - ₹50,000,00025.0%
Surcharge above 50M (old regime)₹50,000,000+25.0%

Applies when income exceeds ₹5,000,000

Health and education cess

Bracket Income Range Rate
Health and education cess at 4%₹0+4.0%

Key Facts

Tax Year

2025/26

Currency

INR

Top Rate

30.0%

Brackets

4 brackets

Tax Credit

₹12,500

Social Contributions

1 item

Assumptions

  • · Old tax regime is used as the representative default model for salaried employees.
  • · Basic exemption limit of INR 250,000 applies (standard for ages under 60).
  • · Standard deduction of INR 50,000 is applied against salary income.
  • · Surcharge and health & education cess are calculated as separate entities beyond income tax brackets.
  • · Tax rebate of lower of income tax or INR 12,500 applies where total income ≤ INR 500,000.
  • · Employees' Provident Fund (EPF) contribution of 12% is mandatory for establishments with 20+ employees.
  • · EPF is treated as deductible social contribution reducing taxable income.
  • · No state or local income taxes are modeled; profession tax varies by state and is nominal.
  • · Model assumes resident ordinarily resident (ROR) status with worldwide income scope.
  • · No voluntary schemes, church tax, or employer-only charges are included.
  • · Surcharge rates on long-term capital gains (capped at 15%) are not modeled as this applies only to capital gains, not salary.

Frequently asked questions

How much income tax do I pay in India if I'm earning INR 800,000 per year?

With an annual income of INR 800,000, you would first benefit from a basic exemption limit of INR 250,000 and a standard deduction of INR 50,000, bringing your taxable income to INR 500,000. You would then pay 5% on the first INR 250,000 of taxable income (INR 12,500) and 20% on the remaining INR 250,000 (INR 50,000), totaling INR 62,500 in income tax before surcharges and cess.

What is the Employees' Provident Fund (EPF) and do I have to contribute?

The EPF is a mandatory social security contribution of 12% of your gross salary that goes into a retirement fund, but the good news is that this amount is deductible from your taxable income. If you work for an establishment with 20 or more employees, your employer is required to deduct 12% of your salary and contribute it to your EPF account.

Do I pay income tax if I earn less than INR 250,000 in India?

No, if your total income is below INR 250,000, you are covered by the basic exemption limit and do not owe any income tax. This exemption applies to individuals under 60 years of age and is the standard threshold for salaried employees in India.

What happens if I earn over INR 5 million per year?

Once your income exceeds INR 5 million, a surcharge is added on top of your income tax. The surcharge rate ranges from 10% (for income between INR 5-10 million) up to 25% (for income above INR 20 million), applied on top of your income tax before the 4% health and education cess is calculated.

Is there a tax rebate available, and who qualifies?

Yes, there is a tax rebate of up to INR 12,500 available if your total income is INR 500,000 or less, which means many salaried employees with lower to middle incomes can reduce their tax liability by this amount. This rebate is non-refundable, so it can only reduce your tax to zero, not create a refund.

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