Income Tax Calculator India
Calculate your tax for FY 2025-26 under both new and old regime. Enter your deductions and instantly see which regime saves you more.
Disclaimer: This calculator gives estimates for general information only and is not tax advice. Tax slabs, rebates, and rules can change, and it excludes surcharge and special-rate incomes. Verify with the Income Tax Department or a qualified chartered accountant before filing.
Annual Income & Type
₹1.20L
Standard deduction auto-applied: ₹75,000 (new regime) · ₹50,000 (old regime)
Old Regime Deductions
Used only for the old regime comparison. New regime ignores these.
New Regime
BetterStd. ded. ₹75,000 applied. 87A rebate if taxable ≤ ₹12L.
Old Regime
Std. ded. ₹50,000 applied. 87A rebate if taxable ≤ ₹5L.
New Regime saves you ₹111.8K/year
Choose the New Regime while filing your ITR to save ₹9.3K/month in tax.
FY 2025-26 (AY 2026-27) · New regime slabs per Budget 2025 · Surcharge not included for incomes below ₹50L · Not a substitute for professional tax advice. Consult a CA for your exact liability.
Understanding the Income Tax Calculator India
This Income Tax Calculator estimates your income tax for FY 2025-26 (Assessment Year 2026-27) under India's two systems side by side: the default New Regime and the optional Old Regime. Enter your salary or income and eligible deductions to see taxable income, tax before rebate, the Section 87A rebate, the 4% Health and Education cess, and your final liability under each regime, so you can tell which one costs you less. It is built for salaried individuals, pensioners, and other resident taxpayers doing rough planning. Figures are estimates for general information, not tax advice, and all calculations run privately in your browser.
How it works
The tool first works out taxable income for each regime by subtracting the applicable standard deduction (₹75,000 New, ₹50,000 Old) and, in the Old Regime, any deductions you claim such as 80C (up to ₹1.5 lakh), 80D, HRA, and home-loan interest. It then applies that regime's slab rates: the New Regime uses six bands from 5% to 30% with a nil rate up to ₹4 lakh, while the Old Regime uses 5%, 20%, and 30% bands with a nil rate up to ₹2.5 lakh. The Section 87A rebate is applied next — it makes tax effectively zero when New Regime taxable income is ₹12 lakh or less, or when Old Regime taxable income is ₹5 lakh or less. Finally a 4% Health and Education cess is added on the tax after rebate. The two totals are shown together so the cheaper regime is obvious.
Worked Example
Salary of ₹15,00,000. New Regime: taxable = 15,00,000 − 75,000 = ₹14,25,000. Slab tax = 5% of 4L (20,000) + 10% of 4L (40,000) + 15% of 2.25L (33,750) = ₹93,750; no 87A rebate (above ₹12L); add 4% cess → about ₹97,500. Old Regime with ₹50,000 standard deduction plus ₹1.5L under 80C: taxable = ₹13,00,000. Slab tax = 12,500 + 1,00,000 + 90,000 = ₹2,02,500; add 4% cess → about ₹2,10,600. Here the New Regime saves roughly ₹1.13 lakh.
Tips & Common Mistakes
- The New Regime is the default from FY 2025-26; you must actively opt for the Old Regime if it suits you better.
- A salaried person can earn up to ₹12.75 lakh with zero tax under the New Regime, because the ₹75,000 standard deduction brings taxable income to ₹12 lakh, which the 87A rebate fully covers.
- The Old Regime usually wins only if your deductions (80C, 80D, HRA, home-loan interest) are large; run both before deciding.
- This estimate excludes surcharge, which applies to incomes above ₹50 lakh, so figures for high earners will be understated.
- Deductions like 80C, 80D, and HRA are not available in the New Regime — only the standard deduction and a few others apply.
- This is a general estimate for planning; confirm your exact liability with the Income Tax Department's e-filing portal or a qualified advisor.
Sources & Methodology
- →Income Tax Department, India — Tax slabs and calculator (https://www.incometax.gov.in)
- →Union Budget 2025 — New Regime slabs and Section 87A rebate changes (https://www.indiabudget.gov.in)
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Built and maintained by TopOpenTools · Last updated June 2026. These tools provide general estimates for educational purposes only and are not financial, tax, insurance, investment, or medical advice. Verify important decisions with a qualified professional.
Frequently Asked Questions
What are the new regime tax slabs for FY 2025-26?
Under the new tax regime (Budget 2025), the slabs are: ₹0–4L (0%), ₹4L–8L (5%), ₹8L–12L (10%), ₹12L–16L (15%), ₹16L–20L (20%), ₹20L–24L (25%), above ₹24L (30%). A full rebate under Section 87A applies if taxable income does not exceed ₹12L, making the effective tax zero. The standard deduction for salaried individuals is ₹75,000.
What are the old regime tax slabs for FY 2025-26?
The old regime retains the traditional slabs: ₹0–2.5L (0%), ₹2.5L–5L (5%), ₹5L–10L (20%), above ₹10L (30%). The standard deduction for salaried individuals is ₹50,000. A rebate under Section 87A is available if net taxable income is ₹5L or below (rebate capped at ₹12,500). The old regime allows deductions under 80C, 80D, HRA, home loan interest, and others.
Which tax regime is better — new or old?
It depends on your deductions. If your total eligible deductions (80C ₹1.5L + standard deduction ₹50K + 80D + HRA + home loan etc.) significantly exceed the new regime's standard deduction of ₹75K, the old regime may yield lower tax. For most salaried employees without large HRA exemptions or home loan interest, the new regime is now often cheaper. Use this calculator to compare both for your specific situation.
What is the standard deduction for salaried employees?
For FY 2025-26, salaried employees get a standard deduction of ₹75,000 under the new tax regime and ₹50,000 under the old tax regime. This is a flat deduction from gross salary before computing tax — no proof or documentation is needed. It was introduced to simplify tax filing and give relief to salaried individuals.
Does this calculator include surcharge and cess?
Health & Education Cess of 4% is included in the calculations. Surcharge is applicable for incomes above ₹50L (10% surcharge), ₹1Cr (15%), ₹2Cr (25%), and ₹5Cr (37% under old regime, capped at 25% under new). This calculator does not include surcharge — if your income exceeds ₹50L, consult a CA for accurate tax computation.