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 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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