Income Tax Calculator
Calculate your income tax for FY 2025-26 under both the new and old regimes. See your slab-wise tax, the Section 87A rebate, the 4% cess, and instantly find out which regime saves you more.
On a gross income of ₹15,00,000, your total tax under the new regime is about ₹97,500 (6.5% effective rate) — the new regime works out cheaper, saving you ₹1.13 L.
How income tax is calculated
Your tax is computed by applying progressive slab rates to your taxable income — that is, your gross income less the standard deduction (and, under the old regime, your eligible deductions). Each slab is taxed only on the income that falls within it. A Section 87A rebate can wipe out the tax entirely if your taxable income is within the rebate limit, and a 4% Health and Education Cess is added on the balance.
New regime: the ₹12 lakh advantage
For FY 2025-26, the new regime offers a full Section 87A rebate up to ₹12 lakh of taxable income. Combined with the ₹75,000 standard deduction, a salaried person earning up to ₹12.75 lakh pays no income tax. The trade-off is that you forgo deductions such as 80C, 80D, and HRA.
Old regime: when deductions win
The old regime keeps the door open to a wide set of exemptions and deductions — Section 80C (₹1.5 lakh), 80D for health insurance, HRA under Section 10(13A), and home loan interest of up to ₹2 lakh under Section 24(b). If your total deductions are large, the old regime can result in a lower tax outgo despite its higher slab rates.
Pick the cheaper regime
- Salaried individuals can switch regimes every year at the time of filing.
- Business owners face restrictions on switching back once they opt out of the new regime.
- This calculator compares both regimes automatically and flags the one that saves you more.
Frequently asked questions
What is the difference between the new and old tax regime?
The new regime (default from FY 2023-24) offers lower slab rates but disallows most deductions and exemptions. The old regime has higher rates but lets you claim deductions like 80C, 80D, HRA, and home loan interest. The new regime suits those with few investments; the old regime can win if you claim substantial deductions.
Do I pay zero tax up to ₹12 lakh under the new regime?
For FY 2025-26, the Section 87A rebate makes income up to ₹12 lakh of taxable income effectively tax-free under the new regime. With the ₹75,000 standard deduction, a salaried individual earning up to ₹12.75 lakh gross pays no income tax. Above this threshold the rebate is withdrawn and normal slab tax applies.
What is the standard deduction?
Salaried individuals and pensioners get a flat standard deduction from their salary income — ₹75,000 under the new regime and ₹50,000 under the old regime. This calculator applies the standard deduction automatically, so enter your gross income without subtracting it yourself.
What is the 4% cess?
A Health and Education Cess of 4% is levied on the income tax payable (after rebate) under both regimes. It funds health and education initiatives and is included in your total tax liability shown above.
Which regime should I choose?
Compute your tax under both and pick the lower one — which this calculator does for you. As a rule of thumb, the old regime tends to win when your total deductions (80C, 80D, HRA, home loan interest under Section 24b) are high, while the new regime is simpler and often better when you claim few deductions.
What are the income tax slabs under the new regime for FY 2025-26?
For FY 2025-26 the new regime slabs are: nil up to ₹4 lakh, 5% from ₹4–8 lakh, 10% from ₹8–12 lakh, 15% from ₹12–16 lakh, 20% from ₹16–20 lakh, 25% from ₹20–24 lakh, and 30% above ₹24 lakh. Thanks to the enhanced Section 87A rebate, residents with taxable income up to ₹12 lakh pay no tax at all. The ₹75,000 standard deduction effectively makes salary up to ₹12.75 lakh tax-free.
Which deductions are lost if I choose the new regime?
The new regime disallows most popular tax breaks — Section 80C (PPF, ELSS, life insurance, EPF), 80D health insurance, HRA exemption, LTA, home loan interest on a self-occupied house under Section 24b, and the 80CCD(1B) NPS deduction. The main benefits you retain are the ₹75,000 standard deduction and the employer NPS contribution under Section 80CCD(2). If your deductions are modest, the lower slab rates usually still come out ahead.
What is the surcharge on high incomes and what is marginal relief?
A surcharge applies on top of tax once income crosses ₹50 lakh — 10% above ₹50 lakh, 15% above ₹1 crore, and 25% above ₹2 crore. The new regime caps the top surcharge at 25% (the old regime’s 37% rate was removed there), making the maximum effective rate about 39%. Marginal relief ensures the extra tax plus surcharge from crossing a threshold never exceeds the income earned above it.
When is advance tax due and who must pay it?
If your total tax liability after TDS exceeds ₹10,000 in a year, you must pay advance tax in four instalments — 15% by 15 June, 45% by 15 September, 75% by 15 December, and 100% by 15 March. Resident senior citizens with no business income are exempt from advance tax. Missing the instalments attracts interest under Sections 234B and 234C.
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The results shown are estimates for illustration only, based on the inputs and assumptions you provide. Actual returns, interest, and tax depend on market conditions, prevailing rates, and applicable laws, which change over time. This is not investment, tax, or financial advice — please consult a qualified advisor before making decisions.