🇮🇳 India · Tax Year 2026-27
How much tax do you really pay in India?
On a ₹15,00,000 salary in India, about ₹97,500 is taken directly as income tax (incl. surcharge & cess) — roughly 7%. But once you add the GST and fuel duty hidden in everyday spending (about ₹30,626 a year), your real effective tax rate is around 9%.
The ₹15,00,000 breakdown
Rules: Tax Year 2026-27 (1 April 2026 – 31 March 2027) under the Income-tax Act, 2025 · IN-2026-27-v1 · last verified 2026-10-02.
Income tax on common salaries
| Salary | New regime | Old regime, no deductions | Old regime, ₹3.75 lakh deductions | Old regime breaks even at |
|---|---|---|---|---|
| ₹6 lakh | ₹0 | ₹23,400 | ₹0 | ₹0.5 lakh |
| ₹8 lakh | ₹0 | ₹65,000 | ₹0 | ₹2.5 lakh |
| ₹10 lakh | ₹0 | ₹1,06,600 | ₹28,600 | ₹4.5 lakh |
| ₹12 lakh | ₹0 | ₹1,63,800 | ₹70,200 | ₹6.5 lakh |
| ₹12.75 lakh | ₹0 | ₹1,87,200 | ₹85,800 | ₹7.25 lakh |
| ₹15 lakh | ₹97,500 | ₹2,57,400 | ₹1,40,400 | ₹5.44 lakh |
| ₹18 lakh | ₹1,50,800 | ₹3,51,000 | ₹2,34,000 | ₹6.42 lakh |
| ₹20 lakh | ₹1,92,400 | ₹4,13,400 | ₹2,96,400 | ₹7.08 lakh |
| ₹25 lakh | ₹3,19,800 | ₹5,69,400 | ₹4,52,400 | ₹8 lakh |
| ₹30 lakh | ₹4,75,800 | ₹7,25,400 | ₹6,08,400 | ₹8 lakh |
| ₹50 lakh | ₹10,99,800 | ₹13,49,400 | ₹12,32,400 | ₹8 lakh |
Resident individual below 60, salary only. Tax includes the rebate, surcharge where it applies and the 4% Health and Education Cess. "₹3.75 lakh deductions" means 80C ₹1.5 lakh + 80D ₹25,000 + home-loan interest ₹2 lakh. The last column is the total of old-regime deductions and exemptions at which the old regime would cost the same as the new one.
See your own real tax rate
Enter your salary and spending, pick a regime — it takes seconds, and nothing is stored.
Open the calculatorIs that a lot?
At an estimated 9% effective rate, you'd work from 1 January until 1 February just to cover tax. For comparison, on the equivalent salary converted at approximate exchange rates, United Kingdom would tax it at about 0%; United States (federal + FICA, before any state tax) would tax it at about 8%. That is a comparison of tax rules, not of living costs.
India tax, answered
How much tax do you really pay in India?
On ₹15,00,000 a year, an estimated 9% of your income becomes tax in India once you count ₹30,626 of GST and fuel duty on top of the ₹97,500 taken directly. Your exact figure depends on your deductions and spending.
What is the difference between my payslip tax rate and my real tax rate?
Your payslip shows the direct rate — about 7% here (income tax (incl. surcharge & cess)). Your real rate also includes the GST and fuel duty you pay whenever you spend, which most people never add up. On this salary that is roughly ₹30,626 more a year.
Is income up to ₹12 lakh tax-free in India?
Under the new regime, a resident individual whose taxable income is up to ₹12 lakh pays no income tax, because the section 156 rebate (up to ₹60,000) cancels it. Salaried employees also get the ₹75,000 standard deduction, so a salary of up to ₹12.75 lakh pays nothing. Just above that line, marginal relief stops the tax from jumping: the tax can never exceed the income above ₹12 lakh. The rebate is not available to non-residents.
What is "Tax Year 2026-27"?
From 1 April 2026 India's income tax is governed by the Income-tax Act, 2025, which replaces the old "previous year" and "assessment year" pair with a single tax year. Tax Year 2026-27 runs from 1 April 2026 to 31 March 2027. Income earned in FY 2025-26 is still assessed in AY 2026-27 under the Income-tax Act, 1961 — a separate obligation. The 2026-27 slabs, rebate and standard deduction are the same amounts as 2025-26.
How much income tax is due on a ₹15,00,000 salary?
About ₹97,500 a year (₹8,125 a month) under the new regime, including the 4% cess. Under the old regime with no deductions it would be ₹2,57,400. Your own figure depends on your deductions, any other income and your residency.
Should I choose the old or the new regime?
Tax.cal cannot choose for you, but it can show the numbers: the old regime only comes out lower if your deductions and exemptions (80C, 80D, HRA, home-loan interest and so on) are large. The table above shows, for common salaries, roughly how much you would need. Salaried people without business income can pick either regime each year when filing.
Does Tax.cal include GST and fuel tax?
Yes, as clearly labelled estimates. GST is applied category by category using the two-slab rates in force since 22 September 2025 (staples nil, most packaged food and everyday goods 5%, most services 18%), and petrol taxes use the official Delhi price build-up (central excise plus VAT, about 28% of the pump price in October 2026). Electricity duty, state professional tax and EPF are left out.