Income Tax Calculator
TaxCalculate income tax for FY 2025-26 under old and new tax regimes. Includes 87A rebate, surcharge, cess, and deductions (80C, 80D, HRA). India income tax.
Written by Anurag Rath Ā· Reviewed by the thecalcu.com team Ā· Last updated 22 June 2026
New regime: only ā¹75,000 standard deduction. Lower rates, fewer exemptions.
Total Tax Payable
ā¹0
Taxable Income
ā¹0
Effective Rate
0.00%
Monthly TDS
ā¹0
Annual Take-Home
ā¹0
Slab Breakdown (New Regime)
+ 4% health & education cess on base tax. Surcharge applies above ā¹50L.
What is a Income Tax?
An Income Tax Calculator estimates your annual income tax liability in India based on your gross income, choice of tax regime, and eligible deductions. It applies the correct slab rates, Section 87A rebate, surcharge, and 4% Health and Education Cess to give you the total tax payable, effective tax rate, monthly TDS, and annual take-home income.
This calculator covers FY 2025-26 (AY 2026-27) tax slabs, the year of Budget 2025. Two regimes are available:
New Tax Regime (Default from FY 2023-24):
- No tax for taxable income up to ā¹12,00,000 (via Section 87A rebate)
- Standard deduction: ā¹75,000 for salaried employees
- Lower slab rates but no deductions (no 80C, 80D, HRA etc.)
Old Tax Regime:
- Standard deduction: ā¹50,000
- Full deductions: 80C (ā¹1.5L), 80D, HRA, 80CCD(1B), home loan interest
- Higher base rates but significantly reduced taxable income for high-deduction taxpayers
For most salaried employees earning up to ā¹12 lakh per year, the New Regime results in zero income tax, the most significant benefit of Budget 2025.
See the TDS Calculator for employer TDS deduction rates, and the GST Calculator for business tax calculations.
Why Use an Income Tax Calculator?
Income tax in India involves multiple layers, slab rates, rebates, surcharge, and cess, that make mental calculation error-prone. Common mistakes include:
- Applying the highest slab rate to the entire income (the slab rate applies only to the portion of income in that band)
- Forgetting the 4% cess on top of income tax
- Confusing 87A rebate eligibility between old and new regimes
- Not accounting for the marginal relief provision just above the ā¹12L threshold
This calculator handles all layers correctly and shows you the complete picture in seconds.
Who Should Use This Calculator?
Salaried employees who want to understand their TDS deductions and verify their payslips, especially after declaring investments to their employer.
HR and payroll professionals computing monthly TDS for employees across different salary bands and regime choices.
Individuals comparing old vs. new tax regime to decide which regime benefits them more, enter the same income in both and compare total tax payable.
Freelancers and consultants with primarily salary or professional income who need a baseline estimate before consulting a CA.
First-time taxpayers who want to understand how Indian income tax works, the steps panel shows the slab-by-slab calculation transparently.
How to use this Income Tax calculator
- Enter your Annual Gross Income, your total annual income before any deductions (for salaried employees, this is your CTC's salary component, or your total compensation before tax).
- Select your Tax Regime, New (default) or Old. The new regime has zero tax for taxable income up to ā¹12 lakh.
- If using the Old Regime, enter your deductions: 80C investments (max ā¹1.5L), health insurance premium (80D, max ā¹25K for self), HRA exemption (enter the exempted amount), and other deductions (NPS 80CCD(1B) max ā¹50K, savings interest 80TTA max ā¹10K, etc.).
- The Total Tax Payable is shown highlighted. Monthly TDS is Total Tax Ć· 12.
- The pie chart shows tax vs. take-home proportion at a glance.
- The Steps panel shows the slab breakdown, deductions applied, surcharge (if any), and cess calculation.
Show formula & methodology āHide formula & methodology ā
Formula & Methodology
New Regime (FY 2025-26):
Taxable income = Gross income ā ā¹75,000 (standard deduction)
Tax = slab calculation (see below)
87A rebate: if taxable ā¤ ā¹12L ā tax = 0
Marginal relief: if taxable > ā¹12L ā tax = min(slab tax, taxable ā ā¹12L)
Cess = (tax + surcharge) Ć 4%
Total = tax + surcharge + cess
New Regime slabs:
| Income range | Rate |
|---|---|
| 0 ā ā¹4,00,000 | 0% |
| ā¹4,00,001 ā ā¹8,00,000 | 5% |
| ā¹8,00,001 ā ā¹12,00,000 | 10% |
| ā¹12,00,001 ā ā¹16,00,000 | 15% |
| ā¹16,00,001 ā ā¹20,00,000 | 20% |
| ā¹20,00,001 ā ā¹24,00,000 | 25% |
| Above ā¹24,00,000 | 30% |
Worked example, Salaried employee, ā¹15,00,000 CTC, New Regime:
Gross income = ā¹15,00,000
Standard dedn. = ā¹75,000
Taxable income = ā¹14,25,000
Tax on ā¹14,25,000:
0ā4L: ā¹0
4ā8L: 5% Ć 4L = ā¹20,000
8ā12L: 10% Ć 4L = ā¹40,000
12ā14.25L: 15% Ć 2.25L = ā¹33,750
Base tax = ā¹93,750
No 87A (taxable > 12L), no surcharge (income < 50L)
Cess = 4% Ć ā¹93,750 = ā¹3,750
Total tax = ā¹97,500
Effective rate = ā¹97,500 / ā¹15,00,000 = 6.5%
Monthly TDS = ā¹97,500 / 12 = ā¹8,125
Frequently Asked Questions
What are the income tax slabs for FY 2025-26 under the New Regime?
What are the income tax slabs for FY 2025-26 under the Old Regime?
Which regime is better, Old or New?
What is the Section 87A rebate for FY 2025-26?
What is Health and Education Cess?
What is surcharge on income tax in India?
What deductions are available under the Old Regime?
How do I use the Income Tax Calculator?
What is TDS and how is it related to income tax?
Does this calculator apply to all types of income?
What is the standard deduction and who can claim it?
Can I switch between Old and New Regime every year?
Planning a income tax optimiser?
This calculator is step 4 of 4 in our Income Tax Optimiser.