Every July the same question lands in every consultant's inbox: "mera tax kitna banta hai?" Here are the salaried slabs your employer applies for Tax Year 2026, how the marginal calculation actually works, and three worked examples you can check a payslip against.
The TY2026 salaried slabs
| Annual taxable salary | Tax |
|---|---|
| Up to Rs 600,000 | 0 |
| Rs 600,001 – 1,200,000 | 1% of the amount above 600,000 |
| Rs 1,200,001 – 2,200,000 | Rs 6,000 + 11% of the amount above 1,200,000 |
| Rs 2,200,001 – 3,200,000 | Rs 116,000 + 23% of the amount above 2,200,000 |
| Rs 3,200,001 – 4,100,000 | Rs 346,000 + 30% of the amount above 3,200,000 |
| Above Rs 4,100,000 | Rs 616,000 + 35% of the amount above 4,100,000 |
The maths is marginal, not flat
A common mistake: applying the top rate to the whole salary. Each slab taxes only the rupees that fall inside it — the fixed amount in the table already contains the tax on all lower slabs.
Three worked examples
- Rs 1,000,000/year (≈ 83,300/month): falls in slab 2 → 1% × (1,000,000 − 600,000) = Rs 4,000 for the year.
- Rs 2,400,000/year (200,000/month): slab 4 → 116,000 + 23% × (2,400,000 − 2,200,000) = 116,000 + 46,000 = Rs 162,000.
- Rs 6,000,000/year (500,000/month): top slab → 616,000 + 35% × (6,000,000 − 4,100,000) = 616,000 + 665,000 = Rs 1,281,000.
Tax Pilot's Tax Tools module has this calculator built in — type the salary, get the liability, save it to the client's file.
Remember the filer angle
The slab tax is only part of the picture: clients not on the Active Taxpayer List face roughly doubled withholding on banking transactions, vehicle purchases, property and more. Filing the return is usually the cheapest tax planning there is.