Salary tax slabs for 2026-27
These rates apply to salaried individuals from 1 July 2026. Only the part of your income inside each slab is taxed at that slab's rate, which is why a pay rise never leaves you with less money.
| Annual taxable salary | Tax for 2026-27 |
|---|---|
| Up to Rs 600,000 | 0% |
| Rs 600,001 to 1,200,000 | 1% of the amount above Rs 600,000 |
| Rs 1,200,001 to 2,200,000 | Rs 6,000 + 11% of the amount above Rs 1,200,000 |
| Rs 2,200,001 to 3,200,000 | Rs 116,000 + 20% of the amount above Rs 2,200,000 |
| Rs 3,200,001 to 4,100,000 | Rs 316,000 + 25% of the amount above Rs 3,200,000 |
| Rs 4,100,001 to 5,600,000 | Rs 541,000 + 29% of the amount above Rs 4,100,000 |
| Rs 5,600,001 to 7,000,000 | Rs 976,000 + 32% of the amount above Rs 5,600,000 |
| Above Rs 7,000,000 | Rs 1,424,000 + 35% of the amount above Rs 7,000,000 |
Compared with 2025-26, rates are lower for incomes between Rs 2.2 million and Rs 7 million, two new slabs were added, and the 9% surcharge on incomes above Rs 10 million was removed. The first three slabs, including the Rs 600,000 tax-free limit, are unchanged.
Worked examples
| Monthly salary | Annual tax 2026-27 | Monthly tax | Annual tax 2025-26 | You save |
|---|---|---|---|---|
| Rs 100,000 | Rs 6,000 | Rs 500 | Rs 6,000 | Rs 0 |
| Rs 150,000 | Rs 72,000 | Rs 6,000 | Rs 72,000 | Rs 0 |
| Rs 250,000 | Rs 276,000 | Rs 23,000 | Rs 300,000 | Rs 24,000 |
| Rs 500,000 | Rs 1,104,000 | Rs 92,000 | Rs 1,281,000 | Rs 177,000 |
How to work it out yourself
- Multiply your monthly taxable salary by 12 to get your annual income.
- Find the slab your annual income falls in.
- Take the fixed amount for that slab, then add the slab's percentage of everything above the slab's starting point.
- Divide by 12 to get the monthly deduction.
Example for Rs 250,000 a month: Rs 3,000,000 a year falls in the Rs 2.2m to 3.2m slab. Tax is Rs 116,000 + 20% of Rs 800,000 = Rs 276,000 a year, or Rs 23,000 a month.