Income Tax Calculator (Universal)
This tool helps you estimate your annual income tax liability based on a progressive slab system. It is designed to be flexible, allowing you to define custom tax brackets.
How Progressive Tax Works
In a progressive tax system, you don't pay a flat percentage on your entire income. Instead, your income is divided into chunks (slabs), and each chunk is taxed at a different rate.
- Example: If the first 300,000 is tax-free, you pay 0% on that portion, even if you earn 10,000,000.
- Marginal vs. Effective Rate: Your Marginal Rate is the tax % on the last dollar earned. Your Effective Rate is the total tax divided by total income (which is usually lower).