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 - ₹250,000 | 0.0% |
| Slab 1 | ₹250,000 - ₹500,000 | 5.0% |
| Slab 2 | ₹500,000 - ₹1,000,000 | 20.0% |
| 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 - ₹5,000,000 | 0.0% |
| Surcharge above 5M | ₹5,000,000 - ₹10,000,000 | 10.0% |
| Surcharge above 10M | ₹10,000,000 - ₹20,000,000 | 15.0% |
| Surcharge above 20M | ₹20,000,000 - ₹50,000,000 | 25.0% |
| 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 earn INR 750,000 per year?
With the old tax regime, you won't pay tax on the first INR 250,000 (basic exemption limit), then 5% on income from INR 250,000 to INR 500,000 (which is INR 12,500), and 20% on income from INR 500,000 to INR 750,000 (which is INR 50,000). Your total income tax before surcharges and cess would be INR 62,500, though you may qualify for a tax rebate of up to INR 12,500 if your total income stays under INR 500,000.
What is the Employees' Provident Fund (EPF) and do I have to pay it?
The EPF is a mandatory 12% social contribution deducted from your salary if you work for an establishment with 20 or more employees. The good news is that this 12% contribution is deductible from your taxable income, which reduces the amount of income tax you owe.
What's the highest income tax rate in India?
India has a progressive tax system with four income brackets under the old tax regime. The highest marginal rate is 30%, which applies to income above INR 1,000,000. Beyond that, you may also pay surcharge (up to 25% for very high earners) and a 4% health and education cess on top of your income tax.
Do I pay different income taxes depending on which state I live in?
No, income tax rates are uniform across India and don't vary by state. However, some states do charge a small profession tax, which varies by location and is typically nominal. The calculator focuses on the national income tax system, which applies to all residents.
How much will I take home if I earn INR 1,200,000 per year?
After applying the standard deduction of INR 50,000, your taxable income is INR 1,150,000. You'll owe income tax across multiple brackets (0% up to INR 250,000, then 5%, 20%, and 30% on higher portions), plus 12% EPF contributions on your gross salary, plus surcharge and health cess on top. Use the calculator to see your exact take-home amount based on all these factors combined.
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