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 15 lakh rupees per year?
If you earn INR 1,500,000 annually, you would be in the highest tax bracket at 30% on income above INR 1,000,000. However, the first INR 250,000 is tax-free (basic exemption limit), and you get a standard deduction of INR 50,000 from your salary, which reduces your taxable income. After applying these deductions and the applicable tax rates across the brackets, your effective tax rate would be significantly lower than the marginal 30% rate.
What is EPF and do I have to contribute to it?
The Employees' Provident Fund (EPF) is a mandatory social security contribution of 12% of your gross income for employees in establishments with 20 or more employees. The good news is that your EPF contribution is deductible from your taxable income, which reduces the amount of income tax you owe. This means your take-home pay calculation accounts for both the EPF deduction and the resulting tax savings.
Is there a tax break if I earn less than 5 lakh rupees?
Yes, if your total income is INR 500,000 or less, you get a tax rebate of up to INR 12,500, which is the lower of your actual income tax or this fixed amount. Combined with the basic exemption limit of INR 250,000, this means many lower-income earners pay minimal or no income tax.
Do I pay different tax rates in different states in India?
India does not have state-level income taxes; income tax is uniform across the country. However, some states do levy a nominal profession tax, which varies by state and is not modeled in this calculator. The tax brackets and rates shown here apply to all residents ordinarily resident in India regardless of which state you live in.
What happens if I earn over 50 million rupees, do I pay extra tax?
Yes, high earners pay a surcharge on top of their income tax. Once your income exceeds INR 5,000,000, a surcharge applies starting at 10% and increasing to 15% for income between 10-20 million, and 25% for income above 20 million. Additionally, a health and education cess of 4% is applied on top of both the income tax and surcharge, so your total tax burden increases significantly at higher income levels.
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