New Tax Regime Slabs for FY 2026-27
Budget 2026 left the slabs from Budget 2025 unchanged. Each rate applies to the part of taxable income within the slab.
| Taxable income | Rate |
|---|---|
| ₹0 to ₹4 lakh | 0% |
| ₹4 lakh to ₹8 lakh | 5% |
| ₹8 lakh to ₹12 lakh | 10% |
| ₹12 lakh to ₹16 lakh | 15% |
| ₹16 lakh to ₹20 lakh | 20% |
| ₹20 lakh to ₹24 lakh | 25% |
| Above ₹24 lakh | 30% |
Health and Education Cess of 4% is added to the tax and any surcharge.
Standard Deduction and the 87A Rebate
Salaried employees get a standard deduction of ₹75,000 with no paperwork. After it, a rebate of up to ₹60,000 wipes out the tax when taxable income is ₹12 lakh or less.
Put together, a salary up to ₹12.75 lakh pays no income tax: ₹0 on ₹1,275,000. Just above the line, marginal relief limits the tax to the income over ₹12 lakh, so ₹13 lakh pays ₹26,000 including cess rather than a sudden jump.
Surcharge and Cess on High Salaries
- 10% surcharge on the tax when taxable income passes ₹50 lakh
- 15% above ₹1 crore, and 25% above ₹2 crore, which is the cap in the new regime
- Marginal relief keeps the extra tax from exceeding the income above each line
On ₹60 lakh, tax with surcharge and cess is ₹1,552,980, an average of 25.9%.
EPF Employee Contribution
Members pay 12% of basic pay (basic plus dearness allowance) into the Employees' Provident Fund. The law only requires it on wages up to ₹15,000 a month, which caps the deduction at ₹1,800 a month. Many employers deduct on the full basic instead.
Set the basic share of gross and the basis in the calculator. On ₹15 lakh with basic at 50%, EPF is ₹21,600 a year on the ceiling and ₹90,000 on full basic, which leaves ₹1,310,000 in hand. In the new regime EPF gives no tax deduction.
Profession Tax by State
Several states charge profession tax on salaries. The calculator uses Maharashtra: ₹200 a month and ₹300 in February, ₹2,500 a year once monthly pay is over ₹10,000. Karnataka, West Bengal, Tamil Nadu and others have their own scales, also capped at ₹2,500 a year; Delhi and several other states charge none. Untick the box if your state has no profession tax.
Worked Example on 15 Lakh
- Gross ₹1,500,000 less standard deduction ₹75,000: taxable ₹1,425,000
- Slab tax: 5% of ₹4 lakh = ₹20,000, 10% of ₹4 lakh = ₹40,000, 15% of ₹2.25 lakh = ₹33,750
- Tax ₹93,750 plus cess ₹3,750: TDS ₹97,500
- EPF: ₹21,600; profession tax: ₹2,500
- In hand: ₹1,378,400 a year, ₹114,867 a month
Only 6.5% of gross goes in income tax, thanks to the rebate structure, which barely touches pay below ₹12.75 lakh.
In Hand Salary at Six Gross Levels
| Gross a year | Income tax | EPF | In hand a year | In hand a month |
|---|---|---|---|---|
| ₹600,000 | ₹0 | ₹21,600 | ₹575,900 | ₹47,992 |
| ₹1,000,000 | ₹0 | ₹21,600 | ₹975,900 | ₹81,325 |
| ₹1,275,000 | ₹0 | ₹21,600 | ₹1,250,900 | ₹104,242 |
| ₹1,500,000 | ₹97,500 | ₹21,600 | ₹1,378,400 | ₹114,867 |
| ₹2,500,000 | ₹319,800 | ₹21,600 | ₹2,156,100 | ₹179,675 |
| ₹6,000,000 | ₹1,552,980 | ₹21,600 | ₹4,422,920 | ₹368,577 |
Basic at 50% of gross, EPF on the ₹15,000 ceiling, Maharashtra profession tax in every row.
CTC, Gross Salary and What Is Taxed
- CTC is not gross. Cost to company usually adds the employer's 12% EPF share and gratuity, which never reach your account. Enter gross salary, not CTC.
- Taxed in the new regime: basic, HRA, special allowance, bonus and most perquisites. HRA and LTA exemptions belong to the old regime.
- Not deducted here: employer NPS contributions, which can still reduce tax in the new regime.
Assumptions and Sources for India
- Resident individual under 60, new tax regime, salary as the only income.
- The old regime (with 80C, HRA and the ₹50,000 standard deduction) is not modelled.
- Profession tax at the Maharashtra rate; EPF on the basis you choose.
Sources: Income Tax Department and PIB releases on the new regime slabs and rebate, the Union Budget 2026-27, EPFO and the Maharashtra GST Department profession tax schedule. Rates for FY 2026-27. For countries nearby, see the Gross to Net Calculator by Country.
Frequently Asked Questions
What is the in hand salary on 15 lakh?
₹1,378,400 a year, about ₹114,867 a month, under the new regime with EPF on the ₹15,000 ceiling and Maharashtra profession tax.
Is a salary of 12 lakh tax-free?
Yes in the new regime. Up to ₹12.75 lakh of salary there is no income tax, thanks to the ₹75,000 standard deduction and the 87A rebate.
Did Budget 2026 change the tax slabs?
No. FY 2026-27 uses the same new regime slabs, rebate and standard deduction as FY 2025-26.
How is EPF worked out?
12% of basic pay, either on the ₹15,000 monthly wage ceiling or on full basic, depending on your employer.
Is profession tax the same in every state?
No. It is a state tax, at most ₹2,500 a year, and some states do not charge it.
Does this calculator cover the old tax regime?
No. It models the default new regime only, which suits most salaried people who do not claim large deductions.