What is the difference in tax slabs between US and India - letsdiskuss
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Sumil Yadav

| Posted on | Share-Market-Finance


What is the difference in tax slabs between US and India


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Entrepreneur | Posted on


Here’s a basic picture…

In India if you’re earning less than Rs 2,50,000 you won’t be taxed. This threshold level is $6,200 in USA.

Other than the ‘No Tax’, we have 3 different tax slabs.

· 10 percent for income between Rs 2,50,001 and Rs 5,00,000.

· 20 percent for income between Rs 5,00,001 and Rs 10,00,000.

· 30 percent for income of and above Rs 10,00,001.

In USA, there are 7 tax slabs. AFTER DEDUCTING the ‘No Tax’ amount of $6,200, what is left in the income, here’s how it is taxed:

· 10 percent for the remaining between $0 and $8,925

· 15 percent for the remaining between $8,926 and $35,250

· 25 percent for the remaining between $36,251 and $87,850

· 28 percent for the remaining between $87,851 and $183,250

· 33 percent for the remaining between $183,251 and $398,350

· 35 percent for the remaining between $398,351 and $400,000

· 39.6 percent for anything at and above $400,001

As you can see, the tax charged in USA is much higher than in USA. However, you should also note that social security net in USA is very (very) solid.


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