Budget 2026 kept India's tax slabs unchanged for FY 2026-27. Under the default new regime, taxable income up to ₹12 lakh is effectively tax-free after the rebate, or ₹12.75 lakh of salary after the ₹75,000 standard deduction. The old regime still suits people with large deductions.
Freelancers and professionals can often use the presumptive scheme, where 50% of receipts counts as profit and detailed accounts aren't required. Income from foreign clients is taxable in India, so the cost of receiving it, and the tax on it, both matter.
1. Income tax, old vs new
Tax under both regimes for salary, presumptive freelance income or actual business profit.
2. Getting paid from abroad
What platforms, transfer providers and exchange-rate markups take from each payment.
- Freelance Platform Fee Calculator (Upwork, Fiverr, Freelancer.com)See what you actually take home from Upwork, Fiverr or Freelancer.com after the service fee, Connects and withdrawal costs, and what to charge to keep the amount you want.
- International Payment Cost CalculatorCompare two ways of getting paid from abroad, such as a wallet, a transfer service or a bank wire. See the fees, the exchange-rate markup and how much actually arrives.
3. Pricing and saving
Set a rate that covers tax and unbilled time, and save for advance tax instalments.
- Freelance Hourly Rate CalculatorWork out an hourly rate that actually covers your income goal, expenses, and self-employment tax, not just a guess.
- Freelancer Tax Set-Aside CalculatorWork out how much of each client payment to put aside for income tax and social contributions, in any country, so the tax bill is never a surprise.
Questions people ask
Is income up to ₹12 lakh tax-free in FY 2026-27?
Under the new regime, for resident individuals, yes: the rebate of up to ₹60,000 cancels tax on taxable income up to ₹12 lakh. Special-rate income such as capital gains doesn't qualify.
Do freelancers pay advance tax?
Yes, if the tax for the year is ₹10,000 or more, it's paid in instalments during the year. Presumptive-scheme taxpayers can generally pay it in a single instalment by 15 March.
Which regime is better for freelancers?
Usually the new regime, unless you have large old-regime deductions. The India Income Tax Calculator compares both with your figures.