Central & South Asia
India: tax at a glance
Residents are taxed on worldwide income. Personal tax is progressive, GST applies to consumption, and India does not permit dual citizenship, only OCI status.
Ways to relocate to India
The residency and citizenship routes that lead here, weighed against the tax picture above.
The taxes
- Personal income (top)
- 30%
- Corporate income
- 30%
- Capital gains
- Long-term capital gains are taxed at 12.5%, short-term gains on listed equity at 20%. Other assets are taxed according to how long they were held.
- VAT / GST
- 18%
- Dividends (WHT)
- 20%
- Interest (WHT)
- 20%
- Royalties (WHT)
- 20%
- Social security (employee)
- 12%
- Social security (employer)
- 12%
- Wealth tax
- None. It was abolished in 2015.
- Inheritance / estate
- None. Estate duty was abolished in 1985.
- Property tax
- A municipal property tax applies, and rates vary by city.
- Other
- A 4% health and education cess applies on top of the income surcharge. Domestic companies pay a concessional rate of 22% (about 25.17% effective), or 15% under the new-manufacturing regime.
How the system works
- Tax system
- Worldwide (residence-based)
- Foreign income
- Taxed (worldwide)
- Taxes by citizenship
- No
- Exit tax
- No
- CFC rules
- No
- CRS
- Participating
The rates below are indicative headline figures (top marginal, standard, and headline rates), reviewed 2026-07. Brackets, surcharges, and state, provincial or cantonal taxes vary. Treat this as a reference map, not advice.
Frequently asked
What is the income tax rate in India?
The top marginal personal income tax rate in India is 30%. The system is progressive. The top slab is 30%, plus a surcharge capped at 25% under the new regime (up to 37% under the old regime) and a 4% health and education cess, for an effective top rate of about 39%.
What is the corporate tax rate in India?
The headline corporate income tax rate is 30%.
Does India tax capital gains?
Capital gains for individuals: Long-term capital gains are taxed at 12.5%, short-term gains on listed equity at 20%. Other assets are taxed according to how long they were held..