Calculate income tax for India FY 2026-27 (new vs old regime), US federal 2026 and UK 2026-27, with take-home pay and marginal and effective rates.
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On ₹15,00,000 the tax comes to ₹97,500, an effective rate of 6.5%; the next unit of income is taxed at 15.6%. The new regime saves ₹1,13,100 a year here.
| Taxable income band | Rate | Income in band | Tax |
|---|---|---|---|
| 0 – 4,00,000 | 0 % | ₹4,00,000 | ₹0 |
| 4,00,000 – 8,00,000 | 5 % | ₹4,00,000 | ₹20,000 |
| 8,00,000 – 12,00,000 | 10 % | ₹4,00,000 | ₹40,000 |
| 12,00,000 – 16,00,000 | 15 % | ₹2,25,000 | ₹33,750 |
Deductions: standard deduction 75,000. Taxable income is rounded to the nearest ₹10 (section 516).
Tax payable is then rounded to the nearest ₹10 (section 516).
The marginal rate is the tax on one more unit of income, before any rounding to whole amounts.
Income tax is charged in slabs, or brackets: each rate applies only to the part of taxable income inside its band, and the pieces are added up. Taxable income is gross income minus deductions, such as the standard deduction in India and the US or the personal allowance in the UK. India then applies the section 156 rebate (section 87A before April 2026), any surcharge and a 4% health and education cess; the US uses the IRS Tax Table below 100,000 dollars of taxable income; the UK result can include employee National Insurance.
The default, a salary of ₹15,00,000 under India's new regime for FY 2026-27, leaves ₹14,25,000 taxable after the ₹75,000 standard deduction. Bracket tax is ₹93,750 and tax payable with cess is ₹97,500, an effective rate of 6.5%; the old regime with ₹1,50,000 of deductions would cost ₹2,10,600.
Figures are for resident individuals with ordinary income. US figures are federal tax for 2026 before credits; UK figures use the 2026-27 rates for England, Wales and Northern Ireland, unchanged from 2025-26. State taxes, Scottish rates and capital gains are not included.
Income tax is charged in slabs, or brackets: each rate applies only to the part of taxable income inside its band, and the pieces are added. Taxable income is gross income minus deductions. A ₹15,00,000 salary under India's new regime for FY 2026-27 leaves ₹14,25,000 taxable and costs ₹97,500 with cess.
The new-regime slabs for FY 2026-27 (tax year 2026-27 under section 202 of the Income-tax Act, 2025, with rates set by the Finance Bill 2026) are:
For the ₹15,00,000 salary, the ₹75,000 standard deduction leaves ₹14,25,000. The slabs give 5% × ₹4,00,000 + 10% × ₹4,00,000 + 15% × ₹2,25,000 = ₹20,000 + ₹40,000 + ₹33,750 = ₹93,750.
The 4% health and education cess adds ₹3,750, for ₹97,500. That is an effective rate of 6.5%, while the next rupee is taxed at 15.6%: the 15% slab plus cess.
| System and assumptions | Gross income | Taxable income | New-regime tax | Old-regime tax |
|---|---|---|---|---|
| India FY 2026-27 salary | 1275000 INR | 1200000.00 | 0.00 INR | 140400.00 INR |
| India FY 2026-27 salary | 1500000 INR | 1425000.00 | 97500.00 INR | 210600.00 INR |
| India FY 2026-27 salary | 2000000 INR | 1925000.00 | 192400.00 INR | 366600.00 INR |
The rows are salaries for a taxpayer below 60, with ₹1,50,000 of deductions claimed under the old regime; taxable income is shown for the new regime. Tax includes cess.
The old regime has a ₹50,000 standard deduction and slabs of nil to ₹2,50,000, 5% to ₹5,00,000, 20% to ₹10,00,000 and 30% above. The nil band is ₹3,00,000 at ages 60 to 79 and ₹5,00,000 from 80.
For ₹15,00,000, old-regime taxable income is ₹13,00,000 and tax is ₹12,500 + ₹1,00,000 + ₹90,000 = ₹2,02,500, or ₹2,10,600 with cess.
The old regime matches the new one at this salary only with ₹5,43,750 of deductions, such as 80C, 80D, HRA exemption and home-loan interest.
For FY 2026-27, the section 156 rebate (section 87A until March 2026) of up to ₹60,000 cancels the tax on taxable income up to ₹12,00,000. With the ₹75,000 standard deduction, a salary up to ₹12,75,000 pays nothing.
Just above ₹12 lakh, marginal relief caps the tax at the income above ₹12 lakh. ₹12,10,000 of non-salary income pays ₹10,000 plus cess, ₹10,400, so it keeps ₹11,99,600: ₹400 less than at ₹12,00,000.
Between ₹12,00,000 and about ₹12,70,588 of taxable income, each extra rupee costs ₹1.04. Above that point the normal 15% slab applies.
For FY 2026-27, a surcharge is added to the tax on high incomes: 10% above ₹50 lakh, 15% above ₹1 crore and 25% above ₹2 crore, with a further 37% band above ₹5 crore under the old regime. Marginal relief limits the jump at each threshold.
On ₹50,50,000 of new-regime income, the slab tax is ₹10,95,000 and relief cuts the surcharge to ₹35,000, so tax with cess is ₹11,75,200. That is ₹52,000 more than at ₹50,00,000, for ₹50,000 more income.
Taxable income and the final tax are rounded to the nearest ₹10 (section 516).
The 2026 standard deduction is $16,100 single and $32,200 married filing jointly. A single filer's brackets are 10% up to $12,400 of taxable income, 12% to $50,400, 22% to $105,700, 24% to $201,775, 32% to $256,225, 35% to $640,600 and 37% above.
On $85,000 of gross income, a single filer has $68,900 taxable. The brackets give $1,240 + $4,560 + $4,070 = $9,870.
Below $100,000 of taxable income, Form 1040 uses the IRS Tax Table, which taxes the midpoint of each $50 income row. The IRS prints the 2026 table in the 2026 Form 1040 instructions, which are not yet published; the same rule applied to the 2026 brackets gives $9,876 for the $68,900 to $68,950 row. That is 11.62% of gross income, while the next dollar is taxed at 22%.
The figures are federal tax before credits. State tax, payroll tax and the deductions for tips, overtime, seniors and car-loan interest are left out. For 2025 returns the standard deduction was $15,750 and $31,500.
In England, Wales and Northern Ireland, the £12,570 personal allowance is tax-free. Above it, 20% applies to the first £37,700 of taxable income, 40% up to £125,140 and 45% above. Employee National Insurance is 8% between £12,570 and £50,270 and 2% above.
On £50,000, taxable income is £37,430, income tax £7,486 and National Insurance £2,994.40, leaving £39,519.60.
The allowance falls by £1 for every £2 of income above £100,000 and is gone at £125,140. On £110,000 the allowance is £7,570, taxable income £102,430 and income tax £33,432. Income in that taper band is taxed at 60%, or 62% with National Insurance.
Scottish income tax bands differ and are not included. The UK bands are unchanged from 2025-26.
The effective rate is total tax ÷ gross income; the marginal rate is the tax on the next unit of income. A ₹15 lakh salary has a 6.5% effective and 15.6% marginal rate, and £50,000 in the UK has 20.96% and 28% once National Insurance is counted.
Moving into a higher bracket taxes only the income above its threshold, so a raise normally leaves you better off. India's relief bands are the exception: just above ₹12 lakh and just above each surcharge threshold, an extra rupee costs ₹1.04.
The estimates are for resident individuals with ordinary income; capital gains at special rates are not included. For US withholding on each paycheck, use the paycheck calculator, and for tax on a purchase price, the GST, VAT and sales tax calculator.
Checked against: Income-tax Act, 2025 s. 202(1) Table: 5% × 4,00,000 + 10% × 4,00,000 + 15% × 4,00,000 = 1,20,000; plus 4% cess = 1,24,800; the next rupee falls in the 20% slab, 20% × 1.04 = 20.8%
Checked against: Income-tax Act, 2025 s. 202(1) and s. 156(2)(a): ₹12L → slab tax 60,000, rebate 60,000, tax after rebate 0
Checked against: Income-tax Act, 2025 s. 19(1) Table item 2(a): standard deduction ₹75,000 leaves ₹12,00,000 taxable, which s. 156(2)(a) takes to nil tax
Checked against: Income-tax Act, 2025 s. 156(2)(b): tax capped at income above ₹12L = 10,000; + 4% cess = 10,400
None for FY 2026-27. The section 156 rebate (formerly section 87A) of up to ₹60,000 cancels the tax on taxable income up to ₹12,00,000, and the ₹75,000 standard deduction lifts the tax-free salary to ₹12,75,000. Just above ₹12 lakh of taxable income, marginal relief caps the tax at the income above ₹12 lakh, so ₹12,10,000 of non-salary income pays ₹10,000 plus 4% cess, ₹10,400.
The new regime, unless your old-regime deductions are large. For FY 2026-27, a salary of ₹15 lakh with ₹1.5 lakh of deductions pays ₹97,500 under the new regime and ₹2,10,600 under the old. At that salary the old regime matches the new one only with ₹5,43,750 of deductions (80C, 80D, HRA exemption, home-loan interest and similar). Enter your own figures to compare both.
For a single filer: 10% up to $12,400 of taxable income, 12% to $50,400, 22% to $105,700, 24% to $201,775, 32% to $256,225, 35% to $640,600 and 37% above. The standard deduction is $16,100 single and $32,200 married filing jointly (IRS Rev. Proc. 2025-32). For 2025 returns the deduction was $15,750 and $31,500.
The £12,570 personal allowance falls by £1 for every £2 of income above £100,000 and is zero at £125,140 (GOV.UK, 2026-27). Losing the allowance adds 20% to the 40% rate, so income between £100,000 and £125,140 is taxed at 60%, or 62% with 2% employee National Insurance. On £110,000 the allowance is £7,570 and income tax is £33,432.
The marginal rate is the tax on the next unit of income; the effective rate is total tax divided by gross income. On the default ₹15 lakh salary the marginal rate is 15.6% (the 15% slab plus 4% cess) but the effective rate is 6.5%. A US single filer earning $85,000 in 2026 pays $9,876, an effective 11.62%, while the next dollar is taxed at 22%.
For planning only. Lenders, tax authorities and markets apply their own rounding, fees and rules; confirm figures with them before you commit.
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