🇮🇳 India · FY 2025-26

Telangana PT ₹200/mo HRA40%

Telangana Income Tax Calculator.

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Quick context

Telangana levies Professional Tax of ₹200/month (~₹2400/year) on income above the slab threshold. Telangana cities qualify for 40% HRA exemption (tier-2 status under Section 10(13A)). Use the calculator below to compare Old vs New regime for your salary.

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India Income Tax Calculator — Telangana

FY 2025-26

Annual Gross Income

₹

₹15.00 L per year

Age Group

Professional Tax (Telangana)

₹200/mo · ₹2400/yr

Old Regime deductions (only used if Old Regime is selected)+ Toggle

Section 80C (max ₹1.5L)

Section 80D Medical (max ₹1L)

HRA Exemption (yearly)

Home Loan Interest 24(b) (max ₹2L)

NPS Extra 80CCD(1B) (max ₹50K)

Old Regime

₹1,30,291

Taxable: ₹10.43 L

Deductions: ₹4.57 L

✓ Better

New Regime (default)

₹97,126

Taxable: ₹14.23 L

Deductions: ₹77,400 (auto)

💡 Recommendation

The New Regime saves you ₹33,165 in tax this year. New regime wins — you don't have enough deductions to beat the default lower slabs.

✨ Live · FY 2025-26 (AY 2026-27) slabs · Includes 4% cess and surcharge · Not legal/tax advice — consult a CA for filings.

About Telangana

Telangana economic profile.

Capital

Hyderabad

Avg Mid-Career Salary

₹17.0L

per year

Cost of Living

vs Mumbai = 100

Market overview

Telangana (split from Andhra Pradesh in 2014) has rapidly become India's 3rd-largest IT exporter. Hyderabad hosts the largest Microsoft campus outside Redmond, Amazon's biggest India campus, Google's second-largest India campus, and major pharma (Dr. Reddy's, Aurobindo, Hetero). HITEC City and Gachibowli are the major IT clusters.

Top industries

IT/ITESPharmaceuticalsAerospaceBiotechnologyFinancial Services

Telangana-specific tax notes

Telangana follows the standard PT structure (₹2,500/year max) but with a slightly progressive slab. Hyderabad is HRA tier-2 (40% exemption) despite being India's 4th-largest tech employer — this is a legal classification not commercial. State industrial policy aggressively subsidizes commercial real estate (HITEC City).

Professional Tax slab

Telangana PT: ₹150/mo for income ₹15,001-20,000; ₹200/mo for ₹20,001+. Maximum ₹2,500/year.

❓ Telangana FAQ

Common questions.

Hyderabad IT salaries vs Bangalore — which is better?

Hyderabad salaries are approximately 5-10% below Bangalore for equivalent roles. The compensation gap has narrowed dramatically in 2022-2026 as global firms (Microsoft, Google, Amazon) invested heavily in Hyderabad. Cost of living is 20-30% lower than Bangalore. For mid-career and senior roles, Hyderabad now offers higher real income than Bangalore.

Why is Hyderabad HRA tier-2 if it's a major IT hub?

HRA tier-1 (50% exemption) is legally granted only to Delhi, Mumbai, Chennai, and Kolkata under the Income Tax Act 10(13A). Hyderabad's status as a tech hub doesn't change its legal classification. This is a quiet ₹40K-80K/year tax disadvantage vs working in Mumbai or Delhi at the same salary.

How did the AP-Telangana split affect taxes?

The 2014 bifurcation didn't affect personal income tax (which is federal). Both states implemented similar PT structures post-split. The bigger commercial impact: Hyderabad retained the IT/pharma economy while Andhra Pradesh had to rebuild industrial infrastructure (Amaravati, Visakhapatnam). For salaried employees, the split was administratively transparent.

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