The 2026-27 salary tax slabs
The Finance Act 2026 set new income tax slabs for salaried individuals, effective from 1 July 2026. The slabs run from 0% up to 35%, and your tax is worked out by applying each rate only to the part of your income that falls in that slab.
Income up to Rs 600,000 a year is tax-free. From Rs 600,001 to Rs 1,200,000 you pay 1% of the amount above Rs 600,000. From Rs 1,200,001 to Rs 2,200,000 the tax is Rs 6,000 plus 11% of the amount above Rs 1,200,000.
The higher slabs are Rs 116,000 plus 20% above Rs 2,200,000 up to Rs 3,200,000; Rs 316,000 plus 25% above Rs 3,200,000 up to Rs 4,100,000; Rs 541,000 plus 29% above Rs 4,100,000 up to Rs 5,600,000; Rs 976,000 plus 32% above Rs 5,600,000 up to Rs 7,000,000; and Rs 1,424,000 plus 35% on income above Rs 7,000,000.
- Up to Rs 600,000: 0%.
- Rs 600,001 to Rs 1,200,000: 1% of the excess.
- Rs 1,200,001 to Rs 2,200,000: Rs 6,000 + 11%.
- Above Rs 2,200,000: 20% to 35% in steps, as listed above.
What changed: the 9% surcharge is gone
The biggest change for salaried individuals in 2026-27 is the removal of the 9% surcharge. In earlier years the surcharge was added on top of the tax for higher earners, which pushed the effective rate up. From 1 July 2026 it no longer applies to salaried individuals.
The slab rates themselves were also revised. If you compare your 2026-27 tax with last year, the difference comes from both the new slabs and the abolished surcharge. The calculator shows the 2025-26 and 2026-27 figures side by side so you can see the change for your own salary.
Remember that these rates are for salaried income. If you have other sources of income, they may be taxed under different rules — the calculator is built for salary.
Worked example: a Rs 200,000 monthly salary
Take a monthly salary of Rs 200,000, which is Rs 2,400,000 a year. That falls in the slab of Rs 2,200,001 to Rs 3,200,000, where the tax is Rs 116,000 plus 20% of the amount above Rs 2,200,000.
The amount above Rs 2,200,000 is Rs 200,000, and 20% of that is Rs 40,000. Add the base of Rs 116,000 and the annual tax is Rs 156,000. That works out to a monthly deduction of Rs 13,000.
Take-home pay is therefore Rs 187,000 a month, and the effective tax rate is 6.5% of the annual salary. The calculator produces the same breakdown for any salary you enter — annual tax, monthly deduction, take-home pay and the effective rate.
- Annual salary: Rs 2,400,000.
- Annual tax: Rs 156,000.
- Monthly deduction: Rs 13,000.
- Take-home pay: Rs 187,000 a month.
How to use the salary tax calculator
Enter your monthly salary and the calculator works out the rest. It shows your annual tax, the monthly deduction, your take-home pay and your effective tax rate, using the 2026-27 slabs.
It also compares your tax with the previous year, so you can see whether you pay more or less than you did in 2025-26. The comparison uses the same salary for both years, so the difference is purely the change in the law.
The result is an estimate based on the published slabs. Your employer applies the same slabs when it deducts tax at source, so the monthly figure should be close to what appears on your payslip.
Monthly deduction and take-home pay
Employers deduct tax from salary every month, spreading the annual tax across twelve payslips. That is why the monthly deduction is simply the annual tax divided by twelve.
Your take-home pay is your gross salary minus that monthly deduction. Knowing the take-home figure helps you plan a budget, because it is the amount that actually reaches your bank account.
If your salary changes during the year — a raise, an allowance or a bonus — the annual figure changes and so does the deduction. Run the calculator again with the new salary to see the updated take-home pay.
