---
title: "Income Tax Slab"
space: "USA Payroll Guide"
url: "https://us-payroll.bizmap.in/docs/payroll-setup/income-tax-slab"
updated: "2026-07-06"
---

> Define the income ranges and the tax rate that applies to each.

## Overview

An **Income Tax Slab** defines income ranges that are taxed at different rates. In a 
progressive tax system, higher income is taxed at higher rates. ERPNext uses the slab to 
calculate the income tax an employee owes based on their earnings.

![Income Tax Slab overview](/files/us_payroll_wiki/image12.png)
*Income Tax Slab overview*

## Create an income tax slab

1. Go to **Home → Salary Payout → Income Tax Slab**.
 ![Income Tax Slab workspace](/files/us_payroll_wiki/image13.webp)
 *Income Tax Slab workspace*
2. Click **Add Income Tax Slab**.
 ![Income Tax Slab list view](/files/us_payroll_wiki/image14.webp)
 *Income Tax Slab list view*
3. Fill in all the details and click **Save**.

![New Income Tax Slab form](/files/us_payroll_wiki/image15.png)
*New Income Tax Slab form*

## Key options


| Option | What it does |
| -------------------------- | ------------------------------------------------------------------- |
| **More than one job** | Check if the slab applies to an employee with more than one job |
| **Married Filing Jointly** | Check only when the slab is for the *married filing jointly* status |

## Related Topics

- [Salary Component](/us-payroll-wiki/payroll-setup/salary-component)
- [Salary Structure](/us-payroll-wiki/payroll-setup/salary-structure)
- [Salary Structure Assignment](/us-payroll-wiki/payroll-setup/salary-structure-assignment)
- [Form 941 Details](/us-payroll-wiki/tax-forms-compliance/form-941-details)