Calculate the exact tax withheld from your employee's salary each month. Enter gross salary, applicable deductions, and let the calculator do the rest. Instant results, no sign-up needed.
Input the employee's monthly basic salary, HRA, allowances, and any annual bonus. Select your preferred currency.
Enter applicable deductions such as standard deduction, provident fund contribution, health insurance, and investment exemptions.
Instantly see the monthly TDS amount, annual tax liability, effective tax rate, net take-home pay, and a full slab-by-slab breakdown.
Enter basic salary and click Calculate TDS to see your results
TDS on salary is calculated in three steps: 1. Annual Gross Salary = (Monthly Basic + HRA + Allowances + Perquisites) x 12 + Annual Bonus 2. Taxable Income = Gross Annual Salary - Standard Deduction - Other Deductions (PF, Health Insurance, Investment, etc.) 3a. Progressive Slab Tax = Sum of (Income in each Slab x Applicable Tax Rate) 3b. Flat Rate Tax = Taxable Income x Flat Rate / 100 Monthly TDS = Annual Tax Liability / 12 Effective Tax Rate (%) = (Annual Tax Liability / Gross Annual Salary) x 100 Monthly Net Pay = Monthly Gross - Monthly TDS - Other Monthly Deductions Mid-Year Adjustment: Adjusted Monthly TDS = (Total Annual Tax - Prior TDS Deducted) / Months Remaining
Effective tax rate benchmarks by annual gross salary (OECD Tax Data Reference): - Under $30,000: 0% - 8% (Low Income Band) - $30,000 - $60,000: 8% - 18% (Lower-Mid Band) - $60,000 - $100,000: 16% - 24% (Mid Income Band) - $100,000 - $200,000: 22% - 30% (Upper-Mid Band) - Above $200,000: 28% - 37% (High Income Band) Default Tax Slabs (USD, Progressive): - Up to $11,000: 0% (Nil) - $11,001 - $44,725: 12% (Basic) - $44,726 - $95,375: 22% (Standard) - $95,376 - $182,050: 24% (Higher) - $182,051 - $231,250: 32% (Premium) - $231,251 - $578,125: 35% (Top) - Above $578,125: 37% (Maximum)
TDS (Tax Deducted at Source) on salary is the amount of income tax that an employer withholds from an employee's salary at the time of payment and deposits directly with the government tax authority. It is a pay-as-you-earn withholding mechanism that ensures income tax is collected regularly throughout the year, reducing the tax burden at year-end.