Income Tax Calculator
Use this income tax calculator to estimate your tax for FY 2025-26 (AY 2026-27) and instantly compare the old and new regimes side by side. Enter your annual income and deductions, pick your age band, and the calculator shows your taxable income, slab tax, Section 87A rebate, surcharge and 4% cess under each regime — then tells you which one costs you less.
AY 2026-27
Deductions apply to the old regime only — the new regime forgoes most of them.
Salaried / pension income gets the standard deduction.
₹1,63,800
- Taxable income
- ₹11,50,000
- Tax before rebate
- ₹1,57,500
- Cess (4%)
- ₹6,300
₹0
- Taxable income
- ₹11,25,000
- Tax before rebate
- ₹52,500
- 87A rebate
- −₹52,500
- Cess (4%)
- ₹0
Tax Payable (New Regime)
₹0
You save ₹1,63,800 vs the old regime
- Take-home100%
- Tax0%
Includes 4% Health & Education cess.
Formula
Tax = SlabTax(Taxable Income) − 87A Rebate + Surcharge + 4% Cess
- Taxable Income
- Gross income minus the standard deduction (salaried) and any eligible deductions (old regime only).
- SlabTax
- Progressive tax across the regime's income slabs for your age band.
- 87A Rebate
- A rebate that can reduce tax to nil for income up to ₹12 lakh (new regime) or ₹5 lakh (old regime).
- Surcharge
- An extra charge on tax for incomes above ₹50 lakh, with marginal relief at each threshold.
- Cess
- Health & Education cess at 4% of tax plus surcharge.
The new regime applies revised, wider slabs (0% up to ₹4 lakh, then 5% to 30%) and a ₹75,000 standard deduction, but forgoes most deductions like 80C and 80D. The old regime keeps the ₹2.5 lakh exemption (higher for seniors) and lets you claim those deductions. The calculator computes both so you don't have to guess.
Worked example
Suppose you are a salaried individual below 60 with a gross annual income of ₹15,00,000 and you opt for the new regime in FY 2025-26, claiming no extra deductions. What is your tax?
- Gross Income
- ₹15,00,000
- Regime
- New (FY 2025-26)
- Standard Deduction
- ₹75,000
Taxable income is ₹14,25,000. The new-regime slabs give ₹93,750 of tax (nil up to ₹4L, 5% of the next ₹4L, 10% of the next ₹4L, 15% of the remaining ₹2.25L). There is no 87A rebate at this income and no surcharge, so adding 4% cess of ₹3,750 makes the total tax ₹97,500.
How the income tax calculator works
Enter your gross annual income and your total deductions, choose your financial year and age group, and indicate whether your income is salaried. The calculator then runs the full computation under both regimes: it subtracts the standard deduction and (for the old regime) your other deductions to get taxable income, applies the slab rates, removes any Section 87A rebate, adds surcharge and 4% cess, and shows the total tax for each regime side by side — with the cheaper one marked.
New regime slabs (FY 2025-26)
The new regime is the default. After Budget 2025 its slabs are:
| Taxable income | Rate |
|---|---|
| Up to ₹4,00,000 | Nil |
| ₹4,00,001 – ₹8,00,000 | 5% |
| ₹8,00,001 – ₹12,00,000 | 10% |
| ₹12,00,001 – ₹16,00,000 | 15% |
| ₹16,00,001 – ₹20,00,000 | 20% |
| ₹20,00,001 – ₹24,00,000 | 25% |
| Above ₹24,00,000 | 30% |
A ₹75,000 standard deduction applies to salaried and pension income, and the Section 87A rebate makes income up to ₹12 lakh tax-free. Most other deductions are not available here.
Old regime slabs (FY 2025-26)
The old regime keeps the traditional slabs and a higher basic exemption for seniors (₹3 lakh for ages 60–79, ₹5 lakh for 80+):
| Taxable income (below 60) | Rate |
|---|---|
| Up to ₹2,50,000 | Nil |
| ₹2,50,001 – ₹5,00,000 | 5% |
| ₹5,00,001 – ₹10,00,000 | 20% |
| Above ₹10,00,000 | 30% |
In return you can claim deductions such as 80C, 80D, HRA and home-loan interest, plus a ₹50,000 standard deduction on salary. The 87A rebate makes taxable income up to ₹5 lakh tax-free.
Old vs new: which is cheaper?
There is no universal answer — it turns on how much you can deduct. As a rough guide, the more deductions you genuinely claim, the more the old regime works in your favour; with few deductions, the new regime’s lower rates usually win. Rather than rely on rules of thumb, put your actual income and deductions into the calculator above and read off the recommended regime. For a deeper walkthrough of the trade-off, see our guide on choosing between the old and new tax regime.
Rebate, surcharge and cess explained
- Section 87A rebate wipes out tax for lower incomes — up to ₹12 lakh in the new regime and ₹5 lakh in the old. Just above the new-regime limit, marginal relief caps the tax at the income earned over the threshold.
- Surcharge is an extra charge on the tax itself for high earners (over ₹50 lakh), with its own marginal relief so crossing a threshold never costs more than the extra rupee that crossed it.
- Health & Education cess of 4% is added to the tax plus surcharge under both regimes.
This income tax calculator is an estimation and planning aid for general information only. It is not tax advice. Tax rules change and individual situations vary; figures here may not reflect every deduction, exemption, capital-gains rate or surcharge that applies to you. Always confirm your final liability with a qualified chartered accountant or tax professional, or via the official Income Tax Department portal, before filing or making decisions.
Frequently asked questions
What is the difference between the old and new tax regimes?
The new regime offers lower slab rates across wider bands and a ₹75,000 standard deduction, but you give up most deductions and exemptions such as 80C, 80D, HRA and home-loan interest. The old regime has higher slab rates but lets you claim those deductions. The new regime is the default; you can opt for the old one if your deductions are large enough to make it cheaper. This calculator computes both and highlights the lower-tax option.
Is income up to ₹12 lakh really tax-free under the new regime?
For FY 2025-26, a resident individual with taxable income up to ₹12,00,000 pays no tax under the new regime, because the Section 87A rebate (up to ₹60,000) cancels the slab tax. For a salaried person the ₹75,000 standard deduction lifts this to a ₹12,75,000 gross salary. Just above ₹12 lakh, marginal relief ensures the tax never exceeds the income over the limit.
Which regime should I choose?
It depends entirely on your deductions. If you claim little beyond the standard deduction, the new regime is usually cheaper. If you have a home loan, full 80C investments, health insurance and HRA, the old regime can win. Enter your real numbers above — the calculator works out both and recommends the one with the lower tax for your situation.
What deductions can I claim, and in which regime?
Common deductions include Section 80C (up to ₹1.5 lakh for EPF, PPF, ELSS, life insurance and more), 80D (health insurance), HRA, and home-loan interest under Section 24. These are available in the old regime only. In the new regime, the main relief is the ₹75,000 standard deduction for salaried and pension income, plus the employer's NPS contribution under 80CCD(2).
Does this calculator handle surcharge and cess?
Yes. A 4% Health & Education cess is added to the tax under both regimes. For incomes above ₹50 lakh a surcharge applies (10% to 37% in the old regime, capped at 25% in the new regime), and the calculator applies the statutory marginal relief at each threshold so the surcharge can't exceed the extra income that triggered it.
Is this income tax calculation final and official?
No. This is an estimate to help you plan and compare regimes. It models salary, pension and other ordinary income with a single deductions total, and does not cover capital gains taxed at special rates, business income, or every item-level cap. Your final liability depends on your full return — confirm it with a qualified tax professional or the official Income Tax portal.