Income Tax Calculator in Chennai — Tamil Nadu Rates 2026
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Quick Answer
For salaried professionals in Chennai, HRA exemption is 50% of basic salary (Metro city). Under the new tax regime, no deductions apply but slabs are lower. Under the old regime, standard deduction (₹50,000), HRA, and Section 80C (₹1.5L) help reduce taxable income. Use the calculator to compare both regimes for Chennai.
Standard deduction of ₹75,000 already available under new regime
Income Tax
₹1,05,000
Health & Education Cess (4%)
₹4,200
Total Tax Payable
₹1,09,200
Effective Tax Rate
7.28%
New Regime Tax Slabs (FY 2025-26)
| Income Range | Tax Rate |
|---|---|
| ₹0 – ₹4L | Nil |
| ₹4L – ₹8L | 5% |
| ₹8L – ₹12L | 10% |
| ₹12L – ₹16L | 15% |
| ₹16L – ₹20L | 20% |
| ₹20L – ₹24L | 25% |
| Above ₹24L | 30% |
Chennai — Tamil NaduRates & Data
| Parameter | Value |
|---|---|
| State | Tamil Nadu |
| Professional Tax (if any) | Nil |
| HRA Exemption City Tier | 50% of basic |
| TDS Threshold | ₹2.5L / year |
Frequently Asked Questions — Chennai
How is income tax calculated for salaried employees in Chennai?
For salaried employees in Chennai, income tax depends on CTC, HRA (50% of basic in this metro/tier-1 city), standard deduction (₹75,000 under new regime), and investments under 80C (up to ₹1.5L under old regime). The new tax regime (FY2025-26) has slabs from 0% to 30% with no deductions except ₹75,000 standard deduction.
Which tax regime is better for employees in Chennai?
Employees in Chennai with HRA claims, home loan interest, and 80C investments typically benefit from the old regime when total deductions exceed ~₹3.75L. For those without significant deductions (especially freshers or renters in cheaper cities), the new regime's lower slabs are usually more beneficial. Use the income tax calculator above to compare both regimes with your exact figures.