How to read this table
Each row takes a gross monthly salary, multiplies it by 12, applies the FY 2026-27 salaried slabs to the annual figure, and divides the tax back into 12 equal monthly deductions. That's the same method employers use for withholding when your salary is the same every month.
The effective rate is your total tax divided by your total salary. It rises gradually, not in jumps, because each slab only taxes the income above its starting point. At Rs 500,000 a month the effective rate is 18.4%, well below the 32% marginal rate on the last rupee.
FY 2026-27 salaried slabs
| Annual taxable salary | Monthly equivalent | Tax |
|---|---|---|
| Rs 0 – Rs 600,000 | up to Rs 50,000 | 0% |
| Rs 600,001 – Rs 1,200,000 | up to Rs 100,000 | 1% of the amount over Rs 600,000 |
| Rs 1,200,001 – Rs 2,200,000 | up to Rs 183,333 | Rs 6,000 + 11% of the amount over Rs 1,200,000 |
| Rs 2,200,001 – Rs 3,200,000 | up to Rs 266,667 | Rs 116,000 + 20% of the amount over Rs 2,200,000 |
| Rs 3,200,001 – Rs 4,100,000 | up to Rs 341,667 | Rs 316,000 + 25% of the amount over Rs 3,200,000 |
| Rs 4,100,001 – Rs 5,600,000 | up to Rs 466,667 | Rs 541,000 + 29% of the amount over Rs 4,100,000 |
| Rs 5,600,001 – Rs 7,000,000 | up to Rs 583,333 | Rs 976,000 + 32% of the amount over Rs 5,600,000 |
| Over Rs 7,000,000 | Over Rs 583,333 | Rs 1,424,000 + 35% of the amount over Rs 7,000,000 |
Source: Finance Act 2026 — Tax Year 2027 salaried slabs (Division I, Part I, First Schedule). Last verified 2026-10-13.
Worked example: a Rs 20,000 raise
On Rs 100,000 a month, annual salary is Rs 1,200,000. That sits at the top of the 1% slab, so annual tax is 1% × (Rs 1,200,000 − Rs 600,000) = Rs 6,000, or Rs 500 a month.
A raise to Rs 120,000 a month (Rs 1,440,000 a year) moves into the next slab: Rs 6,000 + 11% × (Rs 1,440,000 − Rs 1,200,000) = Rs 32,400, or Rs 2,700 a month. The raise costs Rs 2,200 more tax each month, and take-home still goes up by Rs 17,800.
What this table includes & its limits
- Income tax on salary for a resident salaried individual, using gross monthly salary × 12.
- Doesn't deduct EOBI, provident fund or other contributions, which reduce take-home but not (in most cases) taxable salary.
- Doesn't include one-off bonuses, rental or business income, or deductions and credits such as Zakat paid, voluntary pension contributions or donations.
- If more than 75% of your income isn't salary, the non-salaried (business) slabs apply instead.
Frequently asked questions
For general guidance, not tax advice. Your payslip and annual return are the final word.