India tax rates
The top rates a resident individual pays on each kind of income, computed by the Sovereign tax engine from its India tax profile.
Tier 2 — every figure has an accepted source; some rest on a PwC / Deloitte / KPMG / EY summary (marked †). Sources last checked 7 November 2026. Figures last changed 7 November 2026. Profile last reviewed 27 May 2026.
Scroll across the table to see all tax rates.
| Salary | Long-term gains | Short-term gains | Dividends | Interest | Rent | Crypto gains | |
|---|---|---|---|---|---|---|---|
| India | 39%† | 14.95%† | 23.92%† | 35.88% | 39%† | 27.3%† | 39% |
† This figure rests on a PwC tax summary, not on the statute itself. The summary is the only source on file for it.
Each figure is the tax on one more unit of a very large amount of that income, with every layer the engine models: surtaxes and uncapped social contributions included. It is the top marginal rate, not the average rate you pay on all your income.
What is the top income tax rate in India?
The top rate on a salary is 39%. It is the tax on each extra unit of a very high salary, with surtaxes and uncapped social contributions included. The income tax scale alone reaches 30% above INR 2,400,000.
How are capital gains taxed in India?
The top rate on a long-term capital gain is 14.95%. A gain on an asset held for 12 months or less is taxed at up to 23.92%.
How are dividends and interest taxed in India?
The top rate is 35.88% on dividends and 39% on interest. Rental income is taxed at up to 27.3%.
How is crypto taxed in India?
India has its own rules for crypto assets. The top rate on a gain in our model is 39%.
Does India tax foreign income?
Yes. India taxes its residents on their worldwide income. A tax treaty or a credit for foreign tax can reduce the tax on income from abroad.
Does India have a wealth tax?
No. India has no recurring national tax on net wealth in our model. Property taxes and taxes on gifts or inheritances are separate.
Does India have an exit tax for individuals?
This is not verified yet: we have not checked whether India taxes unrealised gains when a resident leaves, so this page does not say that it does not.
When do you become tax resident in India?
The India day test (182-day and 60-day tests): 182 days in the tax year from 1 April, or 60 days plus 365 in the 4 years before. Deemed residence applies to some citizens without any day test. The Income-tax Act 2025 applies from the tax year starting 1 April 2026, with the same figures as before.
Residence decides whether India taxes you on these rates. See the India day-count test and count your own days.
Sources
The India profile cites 8 sources for these rules, 7 of them from a government or a statute.
- CBDT dividend guidance: ordinary resident shareholder · official, retrieved 2026-11-03
- Section 194, table row 4: VDA transfer income · official, retrieved 2026-11-03
- Sections 5 and 6: income scope and residence · official, retrieved 2026-11-03
- Section 147: qualifying unit profits · official, retrieved 2026-11-03
- CBDT surcharge, marginal relief and cess guidance · official, retrieved 2026-11-03
- Section 394(1), table row 7 and 394(4) · official, retrieved 2026-11-03
- Income Tax Department — Let out house property · official, retrieved 2026-11-07
- PwC — india — taxes-on-personal-income · summary, retrieved 2026-11-07
The model covers the general rules for a resident individual. It does not cover every deduction, credit, tax treaty or local tax, and rules change after the check date above. Did you find an error? Tell us, with the source.
Compare India with other countries
Top rates do not show what you would pay. Sovereign applies these rules to your own assets, income and debts, and compares the result across 165 countries. Put India side by side with other countries, see every country or try the live demo.
Other countries in South and Central Asia: Kyrgyzstan, Kazakhstan, Sri Lanka, Mongolia, Nepal, Pakistan.