How to use the Salary Tax Calculator
- 1 Enter your taxable salary, the amount your employer taxes, usually basic pay plus taxable allowances.
- 2 Choose whether the amount is monthly or yearly.
- 3 Read your income tax a month and your salary after tax.
- 4 Check the table to see your slab and how the tax is built up.
Worked example
A monthly salary of Rs 150,000. The yearly salary is Rs 1,800,000, which falls in the slab above Rs 1,200,000. Tax is the fixed Rs 6,000 plus 11% of the Rs 600,000 above the slab start (Rs 66,000), so yearly tax is Rs 72,000. That is Rs 6,000 a month, leaving Rs 144,000 after tax, an effective rate of 4%.
Features
Finance Act 2026 slabs
All eight salaried slabs for tax year 2027, from 0% up to Rs 600,000 to 35% above Rs 7 million.
Slab breakdown
Shows the fixed amount for your slab and the percentage on income above its starting point.
No surcharge
The 9% surcharge on high salaries has been removed for tax year 2027, so none is added.
Monthly and yearly
Tax and take-home pay for both periods, plus your effective tax rate.
When to use it
Checking your payslip
Compare the monthly figure with the tax deducted by your employer.
Job offers
Compare two salary offers after tax.
Increments
See how much of a raise you keep, and whether it moves you into a new slab.
Filing your return
Check the tax already deducted before filing on IRIS.
Frequently asked questions
What are the salary tax slabs for 2026-27?
Up to Rs 600,000 a year: no tax. 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 plus 11%. Rs 2,200,001 to 3,200,000: Rs 116,000 plus 20%. Rs 3,200,001 to 4,100,000: Rs 316,000 plus 25%. Rs 4,100,001 to 5,600,000: Rs 541,000 plus 29%. Rs 5,600,001 to 7,000,000: Rs 976,000 plus 32%. Above Rs 7,000,000: Rs 1,424,000 plus 35%.
Who counts as salaried?
A person whose salary is more than 75% of their taxable income. Business and other non-salaried people use a different set of slabs.
Is my whole salary taxed at my slab rate?
No. The fixed amount covers the income below your slab, and the percentage applies only to the part above the slab's starting point. That is why the effective rate is much lower than the slab rate.
Is there a surcharge on high salaries?
No. The surcharge on salaried income above Rs 10 million was removed for tax year 2027.
Which allowances are taxable?
Most allowances are taxable. Medical allowance up to 10% of basic pay is exempt when no medical facility or reimbursement is given, and some reimbursements are exempt. Your employer's payroll shows taxable salary.
How do I reduce my salary tax?
Tax credits for approved pension funds, Zakat paid and donations to approved institutions can reduce the tax. They are claimed on your return.
Why should I file a return?
Filers appear on the Active Taxpayer List and pay lower withholding tax on property, vehicles, bank profit and cash withdrawals. Salaried people with taxable income must file by 30 September.
Does this calculator include the old slabs?
No. It uses the tax year 2027 slabs. Tax year 2026 (July 2025 to June 2026) used different rates.
Results are estimates based on the official rates linked above. Confirm important figures with the issuing authority or a qualified adviser before you act on them.
Reviewed by ToolsUnlocked Team · Last updated