TDS on Salary Calculator FY 2026-27

Salary TDS Calculator for Tax Year 2026–27

Use this free salary TDS calculator to estimate annual income tax and the monthly tax your employer may deduct from salary during 1 April 2026 to 31 March 2027. Compare the default new regime with the old regime, account for tax already deducted and spread the remaining liability over the months left.

Salary TDS Calculator

Estimate salary TDS for Tax Year 2026–27 under Section 392(1) of the Income-tax Act, 2025. New regime is selected by default.

Projected annual gross salary (₹)Taxable salary components from all employers; not total CTC

Other normal-rate income reported (₹)Exclude income taxable at special rates

Other deductions allowed in new regime (₹)Exclude the automatic ₹75,000 standard deduction

Old-regime deductions & exemptions (₹)Exclude the automatic ₹50,000 standard deduction

Resident age category for old regimeBelow 60 years60 to below 80 years80 years or above

TDS already deducted this tax year (₹)Include relevant TDS considered by the employer

Payroll months remaining

Estimated TDS per Remaining Month

₹0

Standard deduction₹0

Estimated taxable income₹0

Income tax after eligible rebate₹0

Surcharge after marginal relief₹0

Health & education cess (4%)₹0

Estimated annual tax liability₹0

Balance TDS to deduct₹0

Potential excess already deducted₹0

Effective tax rate0%

This is a salary-only planning estimate. It excludes special-rate income, detailed perquisites, house-property loss, relief, foreign income and employer-specific payroll adjustments. Submit accurate declarations and proofs to your employer.

Reviewed on July 13, 2026 using the Income-tax Act, 2025 as amended by Finance Act, 2026 and official Tax Year 2026–27 guidance.

From 1 April 2026, salary payments for Tax Year 2026–27 are covered by Section 392(1) of the Income-tax Act, 2025. An employer estimates annual salary income, calculates tax at the applicable average rate and adjusts payroll deductions as declarations, proofs, previous-employer income or tax credits change.

Quick answer: Estimated monthly TDS equals the remaining annual tax liability after eligible rebate, surcharge, 4% cess and TDS already considered, divided by the payroll months left. Actual deductions can vary because employers recalculate projections during the tax year.

How to use the salary TDS calculator

1. Select the default new tax regime or old tax regime.
2. Enter projected gross taxable salary from all employers, not the full CTC.
3. Add other normal-rate income that has been reported to the employer.
4. Enter only eligible deductions and exemptions for the selected regime; standard deduction is applied automatically.
5. For the old regime, select the applicable resident age category.
6. Enter TDS already deducted and the number of payroll months remaining, including the current month where appropriate.
7. Review annual liability, balance TDS and estimated deduction per remaining month.

Annual tax estimateIncome tax after the applicable rebate, plus surcharge where triggered and 4% cess.

Remaining monthly TDSAnnual liability minus tax already deducted, divided by the payroll months selected.

How salary TDS is calculated

Estimated taxable income = Gross salary + reported normal-rate income − standard deduction − other eligible deductions

Monthly balance TDS = (Annual tax liability − TDS already deducted) ÷ remaining payroll months

Section 392(1) requires salary tax to be deducted at the average income-tax rate computed on estimated salary income for the tax year. This allows payroll TDS to be revised when bonuses, arrears, job changes, declarations or proof verification alter the estimate.

New tax regime slabs for Tax Year 2026–27

Taxable income slab	Rate on that slab	Cumulative tax at upper limit
Up to ₹4,00,000	Nil	Nil
₹4,00,001 to ₹8,00,000	5%	₹20,000
₹8,00,001 to ₹12,00,000	10%	₹60,000
₹12,00,001 to ₹16,00,000	15%	₹1,20,000
₹16,00,001 to ₹20,00,000	20%	₹2,00,000
₹20,00,001 to ₹24,00,000	25%	₹3,00,000
Above ₹24,00,000	30%	₹3,00,000 + 30% above ₹24,00,000

The new regime is the default. A resident individual with normal-rate taxable income not exceeding ₹12,00,000 may receive rebate up to ₹60,000. Marginal relief may apply just above ₹12,00,000. With the ₹75,000 salary standard deduction, an eligible salary-only resident can have nil tax at gross salary up to ₹12,75,000.

Old tax regime slabs used by this tool

Resident category	Nil-rate limit	Remaining slabs
Below 60	Up to ₹2,50,000	5% to ₹5 lakh; 20% to ₹10 lakh; 30% above
60 to below 80	Up to ₹3,00,000	5% to ₹5 lakh; 20% to ₹10 lakh; 30% above
80 or above	Up to ₹5,00,000	20% to ₹10 lakh; 30% above

Under the old regime, an eligible resident individual with total income not exceeding ₹5,00,000 may receive rebate up to ₹12,500. The automatic salary standard deduction used is the lower of ₹50,000 and salary.

Standard deduction and rebate comparison

Item	New regime	Old regime
Salary standard deduction	Up to ₹75,000	Up to ₹50,000
Resident rebate income limit	₹12,00,000 of eligible normal-rate income	₹5,00,000 total income
Maximum rebate	₹60,000	₹12,500
Marginal relief near rebate limit	Included by this calculator	Not applicable in the same manner

Salary TDS calculation example

Assume projected annual gross salary is ₹15,00,000, there is no other income or additional deduction, no TDS has been deducted yet and 12 payroll months remain under the new regime.

• Gross salary: ₹15,00,000
• Standard deduction: ₹75,000
• Taxable income: ₹14,25,000
• Income tax before cess: ₹93,750
• Health and education cess: ₹3,750
• Annual tax liability: ₹97,500
• Estimated monthly TDS: ₹8,125

Changing jobs: Include projected salary from every employer and TDS already deducted by previous employers. If complete information is not reported, the new employer's monthly deduction may be too low and a tax balance may arise later.

Why actual payroll TDS can differ

• bonus, incentive, arrears or variable pay changes;
• taxable perquisites and employer-provided benefits;
• accepted or rejected investment and exemption proofs;
• income and TDS from a previous employer;
• eligible house-property loss or other income declared to the employer;
• special-rate income, surcharge and marginal-relief details;
• relief for salary arrears or foreign tax credit; and
• rounding and payroll adjustments made later in the year.

Related salary and tax tools

Income Tax Calculator Old vs New Tax Regime Salary Take-Home Calculator HRA Calculator Professional Tax Calculator Section 87A Rebate Calculator

Frequently asked questions

How is TDS on salary calculated?

The employer estimates annual salary income, calculates tax at the applicable average rate for the tax year and deducts it through payroll. The estimate can be adjusted when income, deductions or tax credits change.

Which section applies to salary TDS from April 2026?

For salary paid during Tax Year 2026–27 from April 2026 onward, official transition guidance refers to Section 392(1) of the Income-tax Act, 2025. Section 192 applied under the earlier Act.

Is the new tax regime the default?

Yes. The new regime is the default for eligible individuals. A taxpayer who wants the old regime must exercise the applicable option and should inform the employer for payroll computation.

Is salary up to ₹12.75 lakh tax-free in the new regime?

An eligible resident with only normal-rate salary income may have nil tax when gross salary is up to ₹12.75 lakh because the ₹75,000 standard deduction can reduce taxable income to ₹12 lakh and the applicable rebate can eliminate the slab tax. Special-rate income can change the result.

Why did my employer increase monthly TDS?

A higher bonus, revised salary projection, rejected proof, previous-employer income or fewer payroll months remaining can increase the amount required each month to meet the estimated annual liability.

What should I enter as gross salary?

Enter projected taxable salary components from all employers before standard deduction. Do not enter total CTC if it includes non-taxable employer costs that are not salary income.

Does this calculator include standard deduction?

Yes. It automatically applies up to ₹75,000 under the new regime or up to ₹50,000 under the old regime, limited to the salary amount.

What if TDS already deducted is higher than estimated tax?

The calculator shows zero balance monthly TDS and identifies a potential excess. Actual adjustment or refund depends on payroll correction, total tax liability, other credits and the filed return.

Is Form 16 the final tax calculation?

Form 16 reports salary and TDS information from the employer, but final liability is determined in the income-tax return after considering all taxable income, eligible claims, taxes and applicable provisions.

Official sources

• Income Tax Department – Tax Year 2026–27 rates, rebate, surcharge and cess
• Income Tax Department – Section 392: salary tax deduction
• Income Tax Department – Section 19 standard deduction
• CBDT – Income-tax Act transition FAQs
• Income Tax Department – Form 16 and Form 16A

Disclaimer: This calculator provides an educational estimate and is not tax advice or a payroll instruction. Actual salary TDS depends on employer projections, declarations, proofs, income composition and current law. Verify the payroll computation, Form 16 and return details or consult a qualified tax professional.