India's 2026 new regime taxes a ₹12.75 lakh salary at nil income tax. EPF is the only deduction. See real take-home pay at eight common salaries. See our India tax calculator for estimated take-home pay calculations.
A ₹12,75,000 salary in India pays no income tax in 2026. The new regime gives a salaried employee a ₹75,000 standard deduction, which takes ₹12,75,000 of gross pay down to ₹12,00,000 of total income, and the Section 87A rebate of up to ₹60,000 cancels the tax on that exactly. The only deduction left is EPF, ₹61,200 on the calculator's assumption that basic pay is 40% of gross. Take-home is ₹12,13,800 a year, ₹1,01,150 a month.
The same holds lower down. A ₹10,00,000 salary also pays zero income tax; the ₹48,000 of EPF is the entire deduction, leaving ₹9,52,000. Run your own figure through the India salary calculator and those two lines are all you get back.
Salary tax in India is a sequence, and the order decides the answer.
Steps 2 to 5 are tax. Step 6 is not, and that distinction matters more than any other on this page.
| Total income (₹) | Rate |
|---|---|
| 0 to 4,00,000 | Nil |
| 4,00,000 to 8,00,000 | 5% |
| 8,00,000 to 12,00,000 | 10% |
| 12,00,000 to 16,00,000 | 15% |
| 16,00,000 to 20,00,000 | 20% |
| 20,00,000 to 24,00,000 | 25% |
| Above 24,00,000 | 30% |
The 4% cess sits on top of whatever the slabs produce. The bands are published in the Income Tax Department's tax rates table, and the rebate is Section 87A.
Add the rebate to the table and the bottom of the scale stops mattering. Tax on ₹12,00,000 of total income is 5% of ₹4,00,000 plus 10% of ₹4,00,000 — ₹20,000 plus ₹40,000, so ₹60,000. The rebate is capped at ₹60,000. The two cancel, which is why the ceiling on the rebate, not the slabs, fixes the answer at ₹12 lakh of income.
Note what the rebate is not. It is not an exemption and it does not shrink your taxable income; it is a deduction from the tax itself, which is why it stops working the moment the tax it offsets exceeds ₹60,000.
The standard deduction is available to salaried employees and pensioners without proof of anything, and it is the same ₹75,000 whether you earn ₹8,00,000 or ₹80,00,000. Under the old regime the equivalent figure is ₹50,000.
Because the new regime withdraws most of the other allowances — house rent allowance, leave travel concession, the Section 80C basket — the standard deduction is carrying much more weight than it used to. At ₹12,75,000 of salary it is the whole reason the Section 87A rebate applies, since without it total income would sit above the ₹12,00,000 ceiling and the rebate would not be available at all.
Marginal relief stops the ceiling from becoming a cliff. Above ₹12,00,000 of total income, Section 87A allows a rebate equal to the amount by which the tax exceeds the income above the limit, which caps your tax at that excess.
| Gross salary (₹) | Income tax (₹) | EPF (₹) | Take-home (₹) | Monthly (₹) |
|---|---|---|---|---|
| 5,00,000 | 0 | 24,000 | 4,76,000 | 39,667 |
| 7,00,000 | 0 | 33,600 | 6,66,400 | 55,533 |
| 10,00,000 | 0 | 48,000 | 9,52,000 | 79,333 |
| 12,75,000 | 0 | 61,200 | 12,13,800 | 1,01,150 |
| 13,00,000 | 26,000 | 62,400 | 12,11,600 | 1,00,967 |
| 15,00,000 | 97,500 | 72,000 | 13,30,500 | 1,10,875 |
| 20,00,000 | 1,92,400 | 96,000 | 17,11,600 | 1,42,633 |
| 30,00,000 | 4,75,800 | 1,44,000 | 23,80,200 | 1,98,350 |
Every figure in that table comes from the site's calculator. The edge of the relief is the row worth staring at: a salary of ₹12,75,001 produces ₹1 of income tax. A ₹5,000 raise, to ₹12,80,000, produces ₹5,200 — the excess plus the 4% cess, nothing more. A raise in that band can never leave you worse off than you were, and the ₹10,00,000 after tax in India and ₹15,00,000 after tax in India pages show the workings either side of the line.
Then the arithmetic gets ordinary again. At ₹15,00,000 the income tax is ₹97,500, and the rupee that crosses ₹12,00,000 of total income is the one taxed at 15%.
There is a version of this article that tells you a ₹10,00,000 salary in India is taxed at 4.8%. That is the calculator's total deduction, and reading it as tax is wrong.
The EPF line is the employee's 12% contribution to the Employees' Provident Fund. It leaves your bank account every month and lands in your own retirement account. The calculator deducts it because take-home pay means cash you can spend. Two things follow. Your income tax liability does not depend on it — under the new regime the employee's EPF contribution does not reduce taxable income. And if your basic pay is a different share of your package than the 40% the calculator assumes, the EPF figure moves while the tax figure does not.
| Gross salary (₹) | Income tax + cess (₹) | EPF (₹) | Take-home (₹) | Income tax as % of gross |
|---|---|---|---|---|
| 15,00,000 | 97,500 | 72,000 | 13,30,500 | 6.50% |
| 20,00,000 | 1,92,400 | 96,000 | 17,11,600 | 9.62% |
| 25,00,000 | 3,19,800 | 1,20,000 | 20,60,200 | 12.79% |
| 30,00,000 | 4,75,800 | 1,44,000 | 23,80,200 | 15.86% |
| 50,00,000 | 10,99,800 | 2,40,000 | 36,60,200 | 22.00% |
At ₹50,00,000 the income tax is ₹10,99,800 and EPF ₹2,40,000, leaving ₹36,60,200, or 73.2% of gross. Surcharge begins above ₹50,00,000 of total income, which even a ₹50,00,000 salary does not reach once the ₹75,000 standard deduction comes off, so no line for it appears here. The ₹20,00,000 after tax in India and ₹50,00,000 after tax in India pages carry the same two deduction lines.
Two things are missing from the figures above, and both are worth knowing about.
The first is professional tax, in the states that levy it. The calculator does not model it, so a salary in one of those states takes home marginally less than the tables say.
The second is an assumption: that basic pay plus dearness allowance equals 40% of gross. That is a common structure, not a rule. If basic is 50% of your package the EPF deduction is higher and take-home lower, while the income tax is untouched.
₹12,75,000 a year for a salaried employee under the new regime. The ₹75,000 standard deduction brings total income to ₹12,00,000, where the Section 87A rebate of up to ₹60,000 cancels the slab tax. Below that figure income tax is nil; EPF still comes off, so the ₹12,75,000 salary takes home ₹12,13,800.
EPF of ₹48,000 and no income tax. Take-home is ₹9,52,000 a year, ₹79,333 a month. The 4.8% people quote as the tax rate on that salary is the EPF contribution, which is your own money.
It is the default under Section 115BAC, so a salaried employee who does nothing is taxed under it. Salaried taxpayers can still opt for the old regime, where the standard deduction is ₹50,000 and the Section 87A rebate is capped at ₹12,500 for total income up to ₹5,00,000. The old regime pays off only if your deductions are large enough to beat the wider new-regime bands.
No. Under the new regime the employee's EPF contribution is not a deduction against taxable income; it reduces your take-home pay, not your tax. The only pre-slab deduction the calculator applies to a salary is the ₹75,000 standard deduction.
The new regime has one striking feature, and it is easy to miss behind the headline slab table. Between ₹4,00,000 and ₹12,00,000 of total income — which covers most salaried people in the country — the Section 87A rebate claws back everything the slabs charge, and the marginal relief above the limit means the only cost of earning past ₹12,75,000 is the tax on what you earn beyond it.
So the number to remember is ₹12,75,000 of salary for ₹0 of income tax, and ₹1,01,150 a month of take-home at that level. Below it, EPF is the only thing leaving your payslip that you will not see again this month, and you do see it again later.