Does crossing into a higher slab reduce my take-home pay?

No, and it cannot. The higher rate applies only to the income inside the higher slab, not to the whole amount. The slab table on this page shows exactly which rupees were taxed at which rate.

Why is my tax zero at twelve lakh and large just above it?

The section 87A rebate is a cliff rather than a taper. Up to the limit it cancels the liability entirely; one rupee past it, the full slab tax applies. That is the actual shape of the provision.

What is marginal relief?

Surcharge switches on the moment income crosses a threshold and applies to the whole tax bill, so without relief a small raise could cost more than it pays. Relief reduces the surcharge until the extra tax is no more than the extra income.

Taxincome taxIndia only

Income Tax Calculator

Income tax under either regime for the year you select, with the slab breakdown, the 87A rebate, surcharge with marginal relief and cess all shown separately rather than rolled into one figure.

Also called: indian income tax calculator, tax on salary india.

Total tax payable

₹97,500

₹97,500 on ₹15,00,000 of income, an effective rate of 6.84%. The next rupee you earn is taxed at 15%.

Taxable income after deductions

₹14,25,000

Tax before rebate and cess

₹93,750

Rebate under section 87A

₹0

Surcharge

₹0

Marginal relief on surcharge

₹0

Health and education cess

₹3,750

Effective rate

6.84%

Marginal rate

15%

Income after tax

₹14,02,500

Per month after tax

₹1,16,875

How this is calculated

Computed from the published rates for the tax year you selected, which is not necessarily the current year. A calculation, not tax advice, and it does not know anything about your circumstances beyond the figures entered.

Where the income goes

Kept ₹14,02,500 (94%)Tax ₹97,500 (7%)

Slab by slab

Slab	Rate	Income taxed here	Tax
0 to 400,000	0%	₹4,00,000	₹0
400,000 to 800,000	5%	₹4,00,000	₹20,000
800,000 to 1,200,000	10%	₹4,00,000	₹40,000
1,200,000 to 1,600,000	15%	₹2,25,000	₹33,750
1,600,000 to 2,000,000	20%	₹0	₹0
2,000,000 to 2,400,000	25%	₹0	₹0
Above 2,400,000	30%	₹0	₹0

Method and background

This is what the calculation gives for the numbers you entered. It is an estimate, not advice, and it knows nothing about your situation beyond those numbers. Rules for India change on a published schedule; the effective date is shown on every rule-based tool.

How this is calculated

Each slab rate applies only to the income inside that slab, so crossing into a higher slab never reduces take-home pay. The order matters and is not interchangeable: tax on the slabs, then the section 87A rebate, then surcharge on what is left, then cess on the sum of the two. Surcharge carries marginal relief at every threshold, which is the part most calculators omit and the reason a rupee over fifty lakh does not cost a lakh in tax.

tax = sum over bands of rate * (income inside that band)

I: Taxable income (currency)
L_b: Lower edge of a band (currency)
U_b: Upper edge of a band (currency)
r_b: The rate for that band (decimal)

Worked examples

Each of these is asserted on every build. If a change to the engine ever moved one of these answers, the build would fail before the page could print it.

twelve lakh pays nothing under the new regime

Gross annual income: ₹12,00,000
Regime: New regime (default)
Tax year: FY 2025-26 (AY 2026-27)

Total tax payable₹0

Section 87A rebate covers the whole liability at this income; standard deduction of 75,000 applies first

Open this example

fifteen lakh, new regime

Gross annual income: ₹15,00,000
Regime: New regime (default)
Tax year: FY 2025-26 (AY 2026-27)

Total tax payable₹97,500

Slabs applied by hand to 14,25,000: 20,000 + 40,000 + 33,750, then 4% cess

Open this example

zero income is zero tax, not an error

Gross annual income: ₹0
Regime: New regime (default)
Tax year: FY 2025-26 (AY 2026-27)

Total tax payable₹0

degenerate case

Open this example

Method and limits

What it assumes

A resident individual below sixty. Senior and super-senior citizens have different old-regime slabs.
Income is ordinary income. Capital gains, lottery winnings and similar are taxed at their own rates and are not included.
The standard deduction is applied for salaried income only.

What it deliberately does not model

Chapter VI-A deductions beyond the ones offered here are not modelled.
Relief under section 89 for arrears, and foreign tax credits, are outside this calculator.
Advance tax instalments and interest under sections 234A to 234C are separate calculations.

Sources

Income-tax Act, 1961 and the Finance Act (primary government)

Formula version 1.0.0 · definition 1.0.0 · India · Report a problem with this calculator

Frequently asked questions

Does crossing into a higher slab reduce my take-home pay?: No, and it cannot. The higher rate applies only to the income inside the higher slab, not to the whole amount. The slab table on this page shows exactly which rupees were taxed at which rate.
Why is my tax zero at twelve lakh and large just above it?: The section 87A rebate is a cliff rather than a taper. Up to the limit it cancels the liability entirely; one rupee past it, the full slab tax applies. That is the actual shape of the provision.
What is marginal relief?: Surcharge switches on the moment income crosses a threshold and applies to the whole tax bill, so without relief a small raise could cost more than it pays. Relief reduces the surcharge until the extra tax is no more than the extra income.