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TDS on Salary Calculator
Under the new tax regime, salary up to ₹12,75,000 a year is effectively tax-free (₹75,000 standard deduction plus the ₹12,00,000 rebate); above that, slabs from 5% to 30% apply plus 4% cess.
Estimate the income tax on a yearly salary under the new tax regime, and the monthly TDS an employer would deduct if the salary stays the same all year.
What you enter
- Annual taxable salary
- Other annual income
- Standard deduction
- Income up to which tax is nil (rebate)
How the TDS on Salary Calculator works
- Taxable income = salary + other income − standard deduction.
- Tax is worked out slab by slab: nil up to ₹4,00,000; 5% to ₹8,00,000; 10% to ₹12,00,000; 15% to ₹16,00,000; 20% to ₹20,00,000; 25% to ₹24,00,000; 30% above.
- If taxable income is within the rebate limit, tax is nil. Just above it, tax is limited to the amount by which income exceeds the limit. Health and education cess of 4% is then added.
Worked example: Annual salary of ₹18,00,000, no other income
- Taxable income = 18,00,000 − 75,000 = ₹17,25,000.
- Tax: 5% of 4,00,000 = 20,000; 10% of 4,00,000 = 40,000; 15% of 4,00,000 = 60,000; 20% of 1,25,000 = 25,000. Total ₹1,45,000.
- Cess at 4% = ₹5,800, so tax for the year = ₹1,50,800.
- Estimated TDS each month = 1,50,800 ÷ 12 = ₹12,567.
| Taxable income | Rate |
|---|---|
| Up to ₹4,00,000 | Nil |
| ₹4,00,001 to ₹8,00,000 | 5% |
| ₹8,00,001 to ₹12,00,000 | 10% |
| ₹12,00,001 to ₹16,00,000 | 15% |
| ₹16,00,001 to ₹20,00,000 | 20% |
| ₹20,00,001 to ₹24,00,000 | 25% |
| Above ₹24,00,000 | 30% |
Assumptions to keep in mind
- Covers the new tax regime only, for a resident individual under 60, with no other deductions.
- Real TDS also depends on the declarations and proofs an employee submits. Use this as an estimate and confirm with your tax adviser.
Figures last reviewed November 2026. Rates and limits change, so check the official sources below.
Frequently asked questions
How is TDS on salary calculated?
The employer estimates the employee’s tax for the year and deducts it in equal monthly parts. This tool divides the yearly tax by 12.
What is the standard deduction in the new regime?
₹75,000 for salaried employees, as last announced. Check the latest Finance Act.
Does this tool cover the old tax regime?
No. It covers the new regime only, for a resident individual below 60 with no other deductions.
Sources
Let Lumos HRMS do this for every employee
Lumos HRMS calculates attendance-based pay with PF, ESI and other statutory deductions for the whole team. See payroll
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