What is the income tax rate in India?

The income tax rate in India for a $75,000 salary is approximately 7.4% effective. This makes India one of the most tax-friendly countries for that income level, much lower than many other nations. India's tax system uses progressive slabs. For the 2023-24 financial year, if you opt for the new tax regime, income up to INR 700,000 (roughly $8,400) is tax-free due to a rebate. Income between INR 700,001 and INR 900,000 is taxed at 10%, and between INR 900,001 and INR 1,200,000 at 15%. For a $75,000 salary (around INR 6.25 million), your total tax liability under the new regime would be about INR 460,000. This works out to an effective tax rate of just 7.4%. Compare this to countries like Germany, where a similar income could see an effective rate closer to 30-35%. This low effective tax rate is a major draw for expats considering India. It significantly boosts your net disposable income, making your salary go much further in a country with a lower cost of living.