New-regime slabs 0–30% · standard deduction ₹75,000 · §87A ≤ ₹12,00,000 taxable · cess 4% · surcharge 10%–25%. Nationwide central income tax for salaried residents (FY 2025-26 / AY 2026-27), with live ladders from the same engine as our India salary calculator.
By Sammy S. · Founder · AuthorUpdated for 2026
New slabs
0–30%
Std ded
₹75,000
§87A
≤ ₹12,00,000 taxable
Cess
4%
Surcharge
10%–25%
AY
AY 2026-27
Most salaried residents are taxed under the new regime by default (§115BAC) for AY 2026-27 (income earned in FY 2025-26). Employers withhold TDS against annual tax liability; Form 16 summarises salary, deductions claimed with the employer, and tax deducted.
Gross salary is first reduced by the ₹75,000 standard deduction (new regime). Progressive slabs then apply to taxable income. Eligible residents may receive a §87A rebate; surcharge and 4% Health and Education Cess are added afterward.
Rates on this hub come from Income Tax Department published tables for AY 2026-27 and the same engine as our India salary calculator. Confirm against your Form 16 and the e-Filing portal.
New-regime bands run from nil on the first ₹4,00,000 of taxable income through 30% above ₹24,00,000. Only income inside each band is taxed at that band's rate.
The ₹75,000 standard deduction applies automatically for salary/pension income in this model. Section 87A can reduce income tax by up to ₹60,000 when taxable income is within ₹12,00,000; Finance Act 2025 also provides marginal relief just above that ceiling so a small rise does not create a full rebate cliff.
Opting into the old regime (outside this ladder's default) restores Chapter VI-A-style deductions but uses older slabs and a smaller §87A cliff rebate. Toggle regimes in the calculator when you need that comparison.
Health and Education Cess is 4% on income tax plus surcharge. Surcharge applies when taxable income after the standard deduction exceeds ₹50,00,000, with rates rising at ₹1,00,00,000 and ₹2,00,00,000 and official marginal relief at each band. A ₹50,00,000 gross salary in this ladder is still below that threshold after the ₹75,000 deduction.
Employee Provident Fund (EPF), ESI, and state professional tax commonly appear on Indian payslips but are not subtracted in this Tax Insights ladder — the model focuses on central income tax, surcharge, and cess.
Special-rate income (for example certain capital gains) and line-item HRA exemptions are outside this standard salary ladder.
Living in Mumbai, Bengaluru, Delhi, Hyderabad, or elsewhere does not change the central new-regime income-tax slabs for the same taxable salary. There is no additional state personal income tax layered onto these salaried slabs in our model.
Cost of living still varies sharply by city. Use Tax Insights for income-tax math, and city salary guides (when available) for lifestyle context.
Bonuses, exemptions claimed only at return time, and old-regime deduction totals can change your final liability even when monthly TDS looks consistent.
Tax Insights is the editorial hub: Income Tax Department facts, salary ladders, methodology, glossary, FAQs, and sources.
The India calculator lets you toggle new vs old regime, adjust Chapter VI-A totals under the old regime, and run other gross amounts from the same engine.
Both surfaces use the same new-regime default path: standard deduction, slabs, §87A (with marginal relief), surcharge, and cess.
Same order of operations as the India salary calculator methodology — standard deduction, regime slabs, §87A rebate, then surcharge and cess.
1.Start with gross salary
Enter annual salary in INR (or hourly × hours). This estimate focuses on income tax; employee PF / ESI / professional tax are not deducted from take-home here.
2.Subtract standard deduction
Salaried individuals and pensioners claim the regime’s standard deduction without investment proof. Old-regime Chapter VI-A totals you enter are subtracted here.
3.Apply regime slabs
New regime: nil up to ₹4 lakh, then 5% / 10% / 15% / 20% / 25% / 30%. Old regime (below 60): nil to ₹2.5 lakh, then 5% / 20% / 30%. Rates are marginal.
4.Apply §87A rebate (if eligible)
Finance Act 2025 raised the new-regime rebate to ₹60,000 and added marginal relief so a small rise above ₹12 lakh does not create a ₹60,000 cliff. Cess is computed after rebate.
5.Add surcharge and cess
Surcharge applies above ₹50 lakh of total income (10% / 15% / 25%; old regime 37% above ₹5 crore) with official marginal relief. Health and Education Cess is 4% on income tax plus surcharge.
6.Take-home pay
Effective rate = total tax ÷ gross. Marginal rate = the highest slab that applies to the next rupee of taxable income.
New-regime salaried estimate with standard deduction, AY 2026-27 (site year 2026). Live engine output:
Gross
₹15,00,000
Std deduction
₹75,000
Taxable
₹14,25,000
Tax before rebate
₹93,750
Rebate
₹0
Surcharge
₹0
Cess
₹3,750
Total tax
₹97,500
Take-home
₹14,02,500
≈ ₹1,16,875/month net · Run your own numbers
| Constant | Value |
|---|---|
| Standard deduction (new regime) | ₹75,000 |
| §87A rebate (new regime) | Up to ₹60,000 if taxable ≤ ₹12,00,000 (+ marginal relief above) |
| New regime nil slab | Up to ₹4,00,000 |
| New regime rates | 0% · 5% · 10% · 15% · 20% · 25% · 30% |
| Health & Education Cess | 4% of tax + surcharge |
| Surcharge (new / old) | 10% / 15% / 25% (+ 37% old above ₹5Cr) with marginal relief |
Keeping the ladder comparable means omitting items that belong in a full compensation model:
Short definitions aligned with Income Tax Department terminology used on this hub and the calculator. Example figure: ₹15,00,000 gross is our default worked example.
The default individual tax framework with revised slabs and fewer deductions. Most taxpayers stay here unless they opt into the old regime to claim Chapter VI-A deductions.
The earlier slab structure that still allows deductions such as 80C, HRA exemption, 80D, and housing-loan interest, usually with a lower basic exemption and higher rates on middle slabs.
A rebate that reduces income tax for eligible resident individuals when total income is within the prescribed limit — currently up to ₹60,000 of tax when taxable income does not exceed ₹12 lakh under the new regime.
Tax Deducted at Source — amounts your employer (or other payers) withhold and deposit with the government against your annual tax liability.
The annual TDS certificate from your employer summarising salary, deductions claimed with the employer, and tax deducted — used when filing your return.
An additional 4% levied on income tax plus surcharge. It funds health and education programmes and applies after rebate.
An extra percentage on income tax for higher incomes (commonly from above ₹50 lakh). Rates differ between regimes; the new regime caps top surcharge lower than the old regime for very high incomes.
Financial Year (FY) is when you earn the income (1 April–31 March). Assessment Year (AY) is the following year when that income is assessed and the return is filed.
The rate on your next rupee of taxable income — the highest slab that applies. Only income inside that band is taxed at that rate.
Total tax (including cess and surcharge) divided by gross income × 100. Usually lower than your marginal rate because of lower slabs and rebates.
CTC (cost to company) includes employer contributions and benefits. Take-home is cash credited after income tax (and typically PF/professional tax). Our estimate subtracts modelled income tax/cess from gross salary you enter.
New regime — income tax after §87A + surcharge + cess (standard deduction on; EPF/ESI not deducted).
India @ ₹15,00,000
₹14,02,500
Income tax ₹93,750 · Surcharge ₹0 · Cess ₹3,750 · 6.5% effective
India @ ₹25,00,000
₹21,80,200
Income tax ₹3,07,500 · Surcharge ₹0 · Cess ₹12,300 · 12.8% effective
New regime, standard deduction on. Effective % is (income tax + surcharge + cess) ÷ gross.
| Gross | Income tax | Surcharge | Cess | Take-home | Eff. % |
|---|---|---|---|---|---|
| ₹5,00,000 | ₹0 | ₹0 | ₹0 | ₹5,00,000 | 0% |
| ₹8,00,000 | ₹0 | ₹0 | ₹0 | ₹8,00,000 | 0% |
| ₹10,00,000 | ₹0 | ₹0 | ₹0 | ₹10,00,000 | 0% |
| ₹12,00,000 | ₹0 | ₹0 | ₹0 | ₹12,00,000 | 0% |
| ₹15,00,000 | ₹93,750 | ₹0 | ₹3,750 | ₹14,02,500 | 6.5% |
| ₹20,00,000 | ₹1,85,000 | ₹0 | ₹7,400 | ₹18,07,600 | 9.6% |
| ₹25,00,000 | ₹3,07,500 | ₹0 | ₹12,300 | ₹21,80,200 | 12.8% |
| ₹30,00,000 | ₹4,57,500 | ₹0 | ₹18,300 | ₹25,24,200 | 15.9% |
| ₹50,00,000 | ₹10,57,500 | ₹0 | ₹42,300 | ₹39,00,200 | 22% |
| ₹1,00,00,000 | ₹25,57,500 | ₹2,55,750 | ₹1,12,530 | ₹70,74,220 | 29.3% |
Progressive rates on taxable income for AY 2026-27 — each rate applies only to income inside that band.
| Rate | Range |
|---|---|
| 0% | ₹0 – ₹4,00,000 |
| 5% | ₹4,00,000 – ₹8,00,000 |
| 10% | ₹8,00,000 – ₹12,00,000 |
| 15% | ₹12,00,000 – ₹16,00,000 |
| 20% | ₹16,00,000 – ₹20,00,000 |
| 25% | ₹20,00,000 – ₹24,00,000 |
| 30% | Above ₹24,00,000 |
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