Income tax calculator for salaried employees (TDS)
Enter the annual gross salary and, for the old regime, the deductions. You get the tax for the year under both regimes, the TDS an employer would deduct each month, and every step of the working.
Tax for the year
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Your result appears here: the tax under the new and the old regime, the monthly TDS, and the working for each.
Rules used: financial year 2026-27 (assessment year 2027-28), as Workdome's payroll works out tax on salary: the slabs of both regimes, the section 87A rebate with marginal relief, surcharge and 4% cess. Workdome's table for 2026-27 is the same as for 2025-26 (Finance Act 2025); it is to be checked against the Finance Act 2026 text, and tax rules change with each Union Budget. Checked against Workdome's own computation on 18 October 2026. This is an estimate for planning, not tax advice. It covers a full year of equal monthly pay from one employer: it leaves out other income, a previous employer's salary, perquisites and tax already deducted, and Workdome's actual monthly TDS spreads the tax still due over the months left, so a mid-year joiner or an increment gives a different month-to-month figure.
How it is calculated
Slab tax, less the rebate, plus cess
The tax for the year starts from the taxable income: gross salary less the standard deduction and, under the old regime, the exemptions and deductions you enter. The slabs give the tax; the section 87A rebate can wipe it out; cess is added last. TDS is the year's tax spread over the months.
New regime, FY 2026-27
- Slabs
- Up to ₹4,00,000 nil · to ₹8,00,000 5% · to ₹12,00,000 10% · to ₹16,00,000 15% · to ₹20,00,000 20% · to ₹24,00,000 25% · above 30%
- Standard deduction
- ₹75,000. Employer NPS under section 80CCD(2) also counts.
- Rebate (87A)
- No tax if taxable income is up to ₹12,00,000. Just above it, marginal relief caps the tax at the income above ₹12,00,000.
Old regime, FY 2026-27
- Slabs
- Up to ₹2,50,000 nil · to ₹5,00,000 5% · to ₹10,00,000 20% · above 30%
- Deductions
- Standard deduction ₹50,000, HRA, LTA, professional tax up to ₹2,500, Chapter VI-A (80C, 80D, 80CCD(1B), 80TTA, 80E, 80G), home-loan interest up to ₹2,00,000, employer NPS.
- Rebate (87A)
- No tax if taxable income is up to ₹5,00,000, with the same marginal relief just above it.
Both regimes
- Surcharge
- 10% above ₹50 lakh of taxable income, 15% above ₹1 crore, 25% above ₹2 crore, and in the old regime 37% above ₹5 crore.
- Cess
- 4% of the tax and surcharge.
- Monthly TDS
- The tax for the year divided by 12, to the paisa.
Worked example. Gross salary ₹13,00,000, new regime. Less the ₹75,000 standard deduction, taxable income is ₹12,25,000 and the slabs give ₹63,750. That is more than the ₹25,000 by which income exceeds ₹12,00,000, so marginal relief caps the tax, cess included, at ₹25,000: ₹2,083.33 a month.
Questions
Income tax questions employees and HR teams ask
Which regime is better for me?
It depends on how much you can deduct. The new regime has lower slab rates and almost no deductions; the old regime has higher rates but lets you deduct HRA, 80C and the rest. Enter your deductions under the old regime and the calculator shows both totals, so you can compare them.
What is the section 87A rebate?
A rebate that cancels the tax when taxable income is within a limit: ₹12,00,000 in the new regime and ₹5,00,000 in the old. In the new regime that means a salary up to ₹12,75,000 pays no tax after the ₹75,000 standard deduction. Just above the limit, marginal relief makes sure the tax never exceeds the income over the limit.
Is the standard deduction included?
Yes. It is ₹75,000 in the new regime and ₹50,000 in the old regime, taken off the gross salary before anything else.
How does an employer work out the monthly TDS?
Section 192 asks the employer to estimate the year's tax on salary and deduct it over the months. Each month, the tax still due, less what was already deducted, is divided by the months left. This calculator shows a full year of twelve equal months, so the monthly figure is the year's tax divided by 12.
How is HRA exemption worked out?
In the old regime, the exempt HRA for a month is the least of the HRA received, 50% of basic in a metro (40% elsewhere), and the rent paid less 10% of basic. It is nil when no rent is paid. The calculator works out one month and multiplies by twelve.
Why might my payslip differ from this?
A payslip projects the rest of the year from pay so far, so an increment, a bonus, a mid-year joining or tax deducted by a previous employer all change the monthly figure. Other income, perquisites and declarations accepted after proofs are checked can also differ. Treat this as a planning estimate and confirm with your payroll team or a tax adviser.
TDS, worked out every month in payroll
Workdome projects each employee’s tax for the year from their salary structure, declaration and pay so far, deducts the right TDS every month, and prints the same worksheet on Form 16.